Life License Qualification Program (LLQP) Practice Exam

Preferred Provider Organizations (PPOs) are indeed a type of managed care system. This arrangement allows for a network of healthcare providers who have agreed to provide services at reduced rates to members. The primary function of a PPO is to offer flexible options for healthcare services while controlling costs, which is a hallmark of managed care systems. PPOs negotiate prices in advance with their network providers, ensuring that members receive more affordable rates when they seek care from in-network providers. This aligns with the goals of managed care to provide cost-effective and coordinated healthcare. In addition, it is accurate that PPOs typically include a greater number of providers compared to Health Maintenance Organizations (HMOs), which often have more stringent provider lists. Given this context, identifying the statement that suggests PPOs are not a type of managed care system is incorrect, as it fundamentally misunderstands the nature and purpose of PPOs within the healthcare landscape.