Which of the following best describes the characteristics of Preferred Provider Organizations (PPO's)?

Which of the following best describes the characteristics of Preferred Provider Organizations (PPO's)?


A) If service is obtained outside the PPO, benefits are reduced and costs increase.

B) PPO's are generally public in nature rather than private.

C) Health care providers themselves are barred from forming a PPO due to conflict of interest.

D) PPO's operate like an HMO on a prepaid basis.


Answer: A) If service is obtained outside the PPO, benefits are reduced and costs increase.

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