How do HMO and PPO health insurance plans differ in terms of provider networks and referrals?

• A. HMO offers out-of-network options with higher costs and more flexibility; PPO requires in-network providers and a primary care referral
• B. HMO requires in-network providers and a primary care referral; PPO offers out-of-network choices with higher costs and more flexibility
• C. HMO has no referrals; PPO requires referral for all visits
• D. HMO covers only hospital care; PPO covers hospital and pharmaceutical care

Answer: (B)