Health and Life Insurance

Answer: B - HMOs and PPOs are both types of managed care plans. These insurance plans require participants to see doctors and other health care providers that have a contract with the managed care organization. HMOs, or health maintenance organizations, encompass a group of health care providers that offer care for a flat monthly rate, and referrals must be obtained to see specialists or various other providers. PPOs, or preferred provider organizations, offer health care services at a reduced fee, yet allow more flexibility in terms of visits to out-of-network providers.