U.S. Healthcare System Practice Exam 2026 – Comprehensive Prep Guide

The Preferred Provider Organization (PPO) plan is designed to offer a network of healthcare providers that have agreed to provide services at pre-negotiated rates. This structure allows members to choose from a wide range of doctors, specialists, and hospitals within the network, providing greater flexibility compared to other plan types. PPOs encourage but do not require members to use a network of preferred providers, allowing them to seek care outside the network at higher out-of-pocket costs. This balance of flexibility and cost-saving makes PPOs a popular choice for many individuals seeking a health insurance plan that provides a diverse array of provider options while still allowing access to care outside of the preferred network, albeit at a higher price.

In contrast, other options have more specific arrangements regarding provider networks. Health Maintenance Organizations (HMOs) require members to choose a primary care physician and generally require referrals for specialist care within a more restrictive network. Exclusive Provider Organizations (EPOs) also require members to use a network of providers but typically do not cover any out-of-network care, except in emergencies. Medicare Advantage Plans can have various provider network structures that may resemble HMOs or PPOs, but they don’t exclusively represent the concept of a preferred provider network in the same way that PPO