1. A traditional medical plan that reimburses based on usual, customary, and reasonable charges and lets the insured choose any provider is:

A fee-for-service (indemnity) plan

Fee-for-service (indemnity) plans pay providers per service and allow free choice of provider.

2. A health maintenance organization (HMO) emphasizes:

Preventive care and the use of network providers, often through a primary care physician

HMOs stress prevention and managed, in-network care, typically coordinated by a primary care physician.

3. A preferred provider organization (PPO) differs from an HMO because it:

Allows out-of-network care at a higher cost without a referral

PPOs offer network discounts but let members use out-of-network providers at greater cost and without referrals.

4. The amount an insured must pay out of pocket before the health plan begins to pay is the:

Deductible

The deductible is the initial amount the insured pays before benefits apply.