A person receiving health care insurance from his employer knows that he should check the approved list of contracted health care providers before seeking services, in order to receive them at a lower cost. What type of insurance is most likely involved?

Question

Quizplus · Accepted Answer

The mention of a list of approved contracted providers and the lower cost for using them suggests that the insurance plan is a preferred provider organization (PPO). PPOs allow individuals to receive services from a network of approved providers at a discounted rate, while still providing the option to go outside the network for care, albeit at a higher cost. Medicaid, health maintenance organizations (HMOs), and long-term care insurance plans typically have stricter restrictions on which providers individuals can see and how much they will pay for services.

A Person Receiving Health Care Insurance from His Employer Knows