What type of insurance plan does not require designation of a primary care physician (PCP) but has a network of preferred providers?

The correct response is based on the structure and flexibility provided by the preferred provider organization (PPO) model. In a PPO, individuals have the liberty to choose between a network of preferred providers or seek care outside of that network, often with higher out-of-pocket costs when going outside. Unlike other plans, a PPO does not necessitate the designation of a primary care physician (PCP), allowing patients to access specialty services or out-of-network providers directly without a referral.

In contrast, health maintenance organizations (HMOs) typically require members to select a PCP who coordinates all care, including referrals to specialists. Point of service plans (POS) combine features of HMOs and PPOs but still require members to have a primary care physician for in-network services. Exclusive provider organizations (EPOs) restrict coverage to a set network of providers and do not cover out-of-network services except in emergencies, but they may have PCP requirements similar to HMOs.

This flexibility makes PPOs appealing for those who prioritize choice and ease of access in their healthcare decisions.