Which option best describes the nature of PPO plans compared to HMO plans?

PPO plans, or Preferred Provider Organization plans, are designed to provide members with greater flexibility and choice when it comes to healthcare services. One of the key characteristics of a PPO plan is the ability for members to visit specialists without needing a referral from a primary care physician. This feature allows individuals to seek specialized care directly, which can be particularly beneficial for those who may need to see a specialist frequently or may already have a specific healthcare provider in mind.

In contrast, HMO plans, or Health Maintenance Organization plans, typically require members to select a primary care physician and obtain referrals to see specialists. This structured approach helps control costs and coordinate care but can be less convenient for members seeking immediate specialist access.

The other factors that distinguish PPO plans from HMO plans involve cost structures and coverage options. PPO plans often have higher out-of-pocket costs compared to HMO plans, but this is balanced by the increased flexibility they offer. Additionally, unlike HMO plans, PPOs generally provide out-of-network coverage, although at a higher cost to the member compared to in-network services. Understanding these differences helps clarify why the ability to visit specialists without a referral is a defining feature of PPO plans.