Which of the following is NOT true of a preferred provider plan?

A preferred provider plan (PPP) is a type of health insurance plan that establishes a network of preferred providers to deliver care at reduced costs for its members. Members have the flexibility to choose services from this network, which is a notable feature of such plans.

When considering the statement about hospitals being the only entities that can initiate preferred provider plans, it's important to note that while hospitals can indeed be part of a network, they are not the sole initiators of these plans. Preferred provider plans can be established by various types of organizations, including insurance companies, health maintenance organizations (HMOs), and even employer groups. This underscores the collaborative nature of these plans, which often involve multiple parties, including providers, insurers, and sometimes employers.

The other statements regarding members selecting from preferred providers, benefits being reduced for services obtained outside the network, and the inclusion of dental care are all true characteristics of preferred provider plans. Members benefit from a network of providers, and while using out-of-network providers is possible, it generally results in higher out-of-pocket costs. Additionally, many preferred provider plans do encompass dental care, reflecting the broad range of services that members can access within the network framework.