11
QuizMultiple Choice

Health Insurance

Question 11 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Why are the premiums for a PPO health insurance plan generally more expensive than those for an HMO Health Insurance Plan?

Answer
A
PPO insurance plans offer a wider choice of primary care doctors and specialists.
B
HMO insurance plans have higher deductibles and copays.
C
PPO insurance plans have higher deductibles and copays.
D
HMO insurance plans require a referral for a patient to visit a specialist.

Explanation

PPO plans generally charge higher premiums because they let members choose from a wider network of doctors and specialists and often see specialists without a referral. That added flexibility and access costs more. Choice A describes this wider choice; the referral requirement in choice D is a feature commonly associated with HMOs.

AI-written and checked against the verified answer.

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