Preferred Provider Organizations (PPO) are known for which of the following features?

Preferred Provider Organizations (PPOs) are designed to offer patients a greater degree of flexibility when it comes to selecting healthcare providers. This characteristic allows participants to see any doctor or specialist, including those outside the network, without needing a referral. While using in-network providers typically leads to lower out-of-pocket costs, patients have the option to seek services from out-of-network providers, albeit often at a higher cost. This flexibility sets PPOs apart from other healthcare plans, such as Health Maintenance Organizations (HMOs), which usually require referrals and restrict access to network providers.

In contrast, mandatory referrals for specialist services, as indicated in one of the choices, are a common feature in more restrictive plans, such as HMOs, rather than a PPO. Higher premiums and lower out-of-pocket expenses may also misrepresent the nature of PPOs since they typically balance higher premiums with varying out-of-pocket costs based on provider choice. Direct payment to providers without any billing is not specifically associated with PPOs and relates more to other payment models where claims are handled differently. Thus, flexibility in choosing healthcare providers is a hallmark of PPO plans.