Which type of health insurance plan typically offers a network of providers while allowing out-of-network care at a higher cost?

The type of health insurance plan that offers a network of providers while allowing out-of-network care at a higher cost is the Preferred Provider Organization, commonly referred to as PPO. This type of plan is designed to provide flexibility in choosing healthcare providers.

PPOs establish a network of preferred providers, which includes hospitals, doctors, and specialists who agree to provide services at reduced rates. Members benefit from lower out-of-pocket costs when they utilize these in-network providers. However, a significant feature of PPOs is that they also allow members the option to receive care from out-of-network providers. While this option provides greater choice and flexibility, it typically comes at a higher cost to the member, such as increased deductibles and coinsurance.

This balance between a network of providers and the ability to seek care outside that network makes PPOs particularly appealing to individuals who want more options in their healthcare choices, even at an additional cost.