In the context of managed-care insurance plans, which of the following statements is true about a health maintenance organization (HMO)?
A. It combines the features of point-of-service (POS) plans and preferred provider organizations (PPOs).
B. It provides lower deductibles and copayments for in-network care than for out-of-network care.
C. It virtually covers all services except preventive care.
D. It provides lower out-of-pocket costs than does a preferred provider organization (PPO).
Answer: D
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