One Benefit of Preferred Provider Organizations PPOs)compared to Health Maintenance

question 133

Multiple Choice

One benefit of Preferred Provider Organizations PPOs) compared to Health Maintenance Organizations HMOs) is that PPOs:

• A)offer lower costs for members.
• B)give members an individual spending account to use for health care costs.
• C)allow members to choose their own physicians.
• D)always pay 100 percent of the authorized cost of treatment.

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Definitions:

Credit Sales

Sales made by a business where payment is delayed, allowing the customer to pay at a later date.

Selling Expenses

Costs incurred directly in the selling of products or services, including advertising, sales commissions, and retail store expenses.

General and Administrative Expenses

Costs related to the overall operations of a company that are not directly tied to a specific functional area.