How does a Preferred Provider Organization (PPO) generally work?

A Preferred Provider Organization (PPO) generally functions by allowing members a greater degree of flexibility in choosing healthcare providers. Specifically, it enables individuals to see any doctor or specialist without requiring a referral, which is a key feature distinguishing it from other healthcare plans, like Health Maintenance Organizations (HMOs). While members can receive care from any provider, the costs are typically reduced when they use healthcare professionals within the network established by the PPO. This incentivizes plan participants to choose network providers, as they will pay a lower deductible and often have lower co-pays. This model provides a balance of freedom and cost-efficiency in healthcare choice.

The other options describe features that aren't characteristic of PPOs; for instance, the requirement to use a specific network relates more closely to HMOs, while acting solely as a primary care provider doesn't encompass the broad access feature of a PPO. Additionally, offering free healthcare services contradicts the nature of insurance plans that usually involve cost-sharing.