Which of the following is a characteristic of Preferred Provider Organizations (PPOs)?

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PPOs are essentially groups of health care providers that contract with employers, insurance companies, and so forth to provide health care at a reduced fee. They differ from HMOs in that they do not provide benefits on a prepaid basis and employees often are not required to use the preferred providers. Instead, employers may provide incentives for employees to choose, for example, a physician who participates in the plan.

Which of the Following Is a Characteristic of Preferred Provider