Illinois Health Insurance Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The answer is based on the characteristic features of different types of health insurance plans. A preferred provider organization (PPO) plan is designed to provide enrollees with a greater degree of flexibility in choosing healthcare providers. One of the key aspects of a PPO is that it allows members to see any healthcare provider they wish, including specialists, without needing a referral. This flexibility comes with higher premiums compared to other plans, such as Health Maintenance Organizations (HMOs), which typically require members to select a primary care physician and obtain referrals to see specialists.

PPOs also offer a network of providers, allowing members to save on costs when they utilize in-network services. While they can go outside the network and still receive coverage, doing so generally results in higher out-of-pocket expenses. This structure appeals to individuals who value the freedom to choose their providers and do not mind paying higher premiums for that flexibility.

In contrast, HMOs often have lower premiums but require members to work within a more restrictive network of providers. An indemnity plan typically allows a great deal of freedom concerning provider choice; however, it usually involves higher out-of-pocket costs for services, such as deductibles and coinsurance, which may not specifically translate to the flexibility like that found in a