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State RegulationsFL specificDifficulty 1/5

A Preferred Provider Organization (PPO) is best described as:

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Answer & full 3-part explanation (select an option above, or peek)

Why A is correct

Under Florida law, a PPO is a health plan, supervised by the Office of Insurance Regulation, built on a contracted network of providers who deliver services at discounted rates, while members retain the flexibility to go outside the network at higher cost-sharing. That dual structure, discounted network care plus the out-of-network option, is the PPO's defining feature in Florida's plan-type spectrum.

Why the other options are wrong

  • B) PPOs cover a broad range of services in and out of the network, not hospitalization only.
  • C) PPOs are private health plan arrangements, not government hospital systems for veterans.
  • D) The mandatory primary-care referral gatekeeper is characteristic of HMOs, not PPOs, which generally allow self-referral.

Memory hook

PPO = preferred network, or pay more outside it.

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