Which of the following best describes the coverage offered by a PPO?

A Preferred Provider Organization (PPO) offers a flexible health insurance plan that allows members to seek care from a network of preferred providers while also providing the option to access out-of-network care. When members choose to receive care from out-of-network providers, they typically incur higher out-of-pocket costs compared to in-network services. This structure provides a balance of choice and cost efficiency, enabling policyholders to select either in-network providers for lower rates or out-of-network providers at a higher cost.

The other options do not accurately represent the characteristics of a PPO. Coverage limited to in-network providers only would suggest a more restrictive model, perhaps akin to an HMO (Health Maintenance Organization), where members must use a designated network of doctors and facilities. The notion of exclusive coverage for preventive health services misrepresents the broad range of services that PPOs cover, which extends beyond just preventive care. Lastly, stating that there is no cost-sharing for covered services contradicts the fundamental design of PPOs, where copayments, deductibles, and coinsurance are standard elements of the coverage structure for both in-network and out-of-network services.