Which statement describes the cost-sharing arrangement typical of a PPO when using non-preferred providers?

• A. They always pay the full price for services
• B. They never pay deductibles regardless of provider
• C. They must use only in-network providers
• D. They may pay a higher copayment and deductible when using non-preferred providers

Answer: (D)

In a PPO, you have flexibility to see any licensed provider, but your out-of-pocket costs depend on whether the provider is in-network or out-of-network. When you stay with preferred (in-network) providers, you typically pay lower copayments, lower coinsurance, and any applicable deductible at a lower level or not at all during the visit. If you choose non-preferred (out-of-network) providers, the plan usually covers less of the cost, so you end up with higher copayments and a higher deductible (and often higher coinsurance) for the services you receive. The overall message is that using non-preferred providers leads to higher cost-sharing, which is why this statement is the best description of a PPO’s arrangement.

The other options don’t fit because: you don’t always pay the full price—out-of-network care costs more, but you still receive some coverage; deductibles can apply, even with non-preferred providers; and PPOs do not require you to use only in-network providers—there is freedom to go out-of-network, just at higher out-of-pocket costs.