Which statement correctly describes a PPO?

A Preferred Provider Organization (PPO) is designed to offer flexibility in healthcare choices. The statement that accurately describes a PPO recognizes that while members can seek care from both in-network and out-of-network providers, the costs associated with out-of-network services tend to be significantly higher. This characteristic is crucial as it incentivizes members to utilize in-network providers, who have negotiated lower rates and established networks for more cost-effective care.

PPOs typically do not require members to choose a primary care physician, which distinguishes them from Health Maintenance Organizations (HMOs). This allows for greater autonomy in selecting healthcare providers. Additionally, contrary to the notion that PPOs cover only preventive care, they provide a broad range of medical services across both in-network and out-of-network settings. Finally, the access to healthcare providers is not strictly limited to a few, as a PPO usually encompasses a larger network, allowing members considerable choices among various providers for their medical needs.