How does a PPO plan differ from an HMO?

A PPO (Preferred Provider Organization) plan is distinct from an HMO (Health Maintenance Organization) primarily due to the flexibility it offers in choosing healthcare providers. Individuals enrolled in a PPO plan have the convenience to see any healthcare provider, including specialists, without needing a referral from a primary care physician. This allows for greater choice and access to a wider network of healthcare services.

PPOs often have a network of preferred providers with whom they negotiate rates, but members can also go outside this network for care at a higher cost. This contrasts with HMOs, which typically require members to choose a primary care physician and obtain referrals for specialist care, limiting the level of choice and flexibility.

By emphasizing this ability to choose freely among various providers and specialists, PPO plans cater to individuals who value this characteristic in their healthcare decisions, thus making the choice for flexibility the correct one in differentiating between these two types of health insurance plans.