Question

When comparing an HMO to a PPO, the PPO ________.

1) always requires service in a network
2) provides a greater choice of providers
3) always requires a referral to specialists
4) is a prepaid medical service plan

Answer 1

A PPO provides a greater choice of healthcare providers compared to an HMO, which may require referrals for specialists and typically restricts members to a network of doctors.

Step-by-step explanation:

When comparing an HMO to a PPO, the correct statement is that the PPO provides a greater choice of providers. Unlike an HMO, which may require members to select a primary care physician and obtain referrals before seeing specialists, a PPO generally allows members to see any healthcare provider they choose, including specialists, without a referral. This greater flexibility often comes with higher premiums and out-of-pocket costs such as deductibles and co-pays for services received outside the PPO network.