Preferred provider organizations (PPOs) are open-ended plans that allow patients to use non-PPO providers in exchange for?

Preferred Provider Organizations (PPOs) are designed to offer flexibility in healthcare choices. Patients have the freedom to see any healthcare provider, but the level of financial responsibility they incur can vary significantly based on their choice of provider. When patients choose to use non-PPO providers, they typically face higher out-of-pocket expenses.

This increase in costs is due to the fact that non-PPO providers have not agreed to the discounted rates negotiated by the PPO. Consequently, patients may need to pay a larger portion of the bill, which can include higher copayments or coinsurance, as well as potentially reaching a higher deductible before their insurance coverage kicks in.

In contrast to other options suggested, which involve premiums or payment structures that do not directly relate to using non-network providers or which would not typically be associated with PPO plans, higher out-of-pocket expenses directly correlate to the concept of flexibility versus cost within the PPO model. Using non-PPO providers often leads to increased costs, making this the correct choice.