Which statement best describes Preferred Provider Organization (PPO) plans?

• A. They must use only in-network providers and cannot go out-of-network.
• B. They offer no discounts or cost-sharing.
• C. They allow choice with network discounts, and out-of-network options with higher costs.
• D. They require PCP gatekeeping.

Answer: (C)

PPO plans give you flexibility with negotiated discounts in-network and the option to see out-of-network providers at higher costs. You’ll pay less when you stay in-network because of the provider discounts and cost-sharing, but you’re not restricted to in-network providers—going out-of-network is allowed, just more expensive. They also typically don’t require a primary-care physician referral to see a specialist, which keeps access more direct. So, the statement that best describes PPOs is that you have choice with network discounts, plus out-of-network options with higher costs. The idea that you must stay in-network, or that there are no discounts or cost-sharing, or that PCP gatekeeping is required, does not fit how PPO plans work.