Which plan typically has higher out-of-pocket costs but offers more provider options?

The plan that typically has higher out-of-pocket costs but offers more provider options is the Preferred Provider Organization (PPO). PPOs are designed to provide flexibility in choosing healthcare providers; they allow members to see any doctor or specialist without needing a referral, and they do not require the use of a primary care physician. While this greater freedom to choose comes with higher premiums and deductibles, members benefit from a wider network of providers and reduced costs when using in-network services.

In contrast, Health Maintenance Organizations (HMOs) generally have lower out-of-pocket costs but require members to select a primary care physician and obtain referrals for specialists, which limits provider flexibility. Medicare Advantage plans offer a mix of coverage options, but they often mirror HMO or PPO structures without the same level of provider choice as PPOs. Medicaid, being a state and federal assistance program, might have minimal costs but typically restricts choices to a more localized network of providers, similar to HMOs. Thus, the characteristics of PPOs align with the description provided in the question.