Which of the following is a characteristic of Preferred Provider Organizations (PPOs)?

PPOs do not require members to designate a primary care physician (PCP) as a gatekeeper for referrals to specialists. This is a key distinction from Health Maintenance Organizations (HMOs), which do enforce such a requirement. Members of PPOs can directly access specialists without needing a referral, providing greater freedom in their healthcare choices.

Contrary to this choice, PPOs do provide out-of-network benefits, albeit at a higher cost-sharing rate. This characteristic allows members to seek care from providers outside the network, although they will incur greater out-of-pocket expenses compared to using in-network providers.

This option refers to a payment model often used in capitated plans, such as some HMOs, rather than a characteristic of PPOs. PPOs usually operate on a fee-for-service basis, where providers are reimbursed for each service rendered, rather than a flat fee per member.