What is the contractual arrangement called when practitioners and insurers are linked to provide dental care at below-average fees?

• A. Preferred provider organization
• B. Health maintenance organization
• C. Exclusive provider organization
• D. Point of service

Answer: (A)

Negotiated discounts within a provider network are the hallmark of a preferred provider organization. In this arrangement, dentists and the insurer agree on reduced, pre-set fees for services in exchange for a steady flow of patients. When you see an in-network dentist, the fee is at that negotiated rate, which lowers your out-of-pocket costs. You can still go to a dentist outside the network, but those charges are typically higher because they aren’t bound by the discounted rate. This setup is distinct from plans that rely on a single gatekeeper or capitation (like some HMOs), exclusive no-out-of-network coverage, or plans that blend features with varying network rules.