How does a Preferred Provider Organization (PPO) generally manage costs when a member sees an out-of-network provider?

In a Preferred Provider Organization (PPO) plan, members typically receive the highest level of coverage when they visit in-network providers. However, when a member opts to see an out-of-network provider, the cost-sharing arrangement is different. The option indicating that the plan pays 50% for out-of-network services is correct because PPOs often have a tiered cost structure. Members may have higher out-of-pocket costs for out-of-network care, but the insurance still provides some level of reimbursement rather than none at all. This allows members the flexibility to choose their healthcare providers while still receiving partial financial assistance for services rendered outside the network.

The other options either misrepresent the typical cost-sharing structure of PPOs or imply a complete lack of coverage, which does not align with the flexible nature that PPO plans are known for.