What are Provider Specific Plans (PSP) characterized by?

Provider Specific Plans (PSP) are characterized by limited access to a subset of providers within specific networks. This means that members of a PSP typically receive their healthcare services from a designated group of healthcare providers, as outlined in the plan's network.

This structure allows for lower premiums and out-of-pocket costs because the insurance plan negotiates rates with a specific group of providers. While members have the benefit of cost savings, they might not have the flexibility to seek care from any provider outside of this network unless they are willing to pay higher costs.

The other options describe characteristics that are not typical of Provider Specific Plans. For example, unlimited access to all providers does not reflect the nature of a PSP, as this type of plan restricts choices to a specific network. Similarly, mandatory referrals to specialists are more closely associated with Managed Care Plans rather than PSPs, which may not require referrals in all cases. Lastly, out-of-network coverage without extra costs contradicts the basic principle of PSPs, as seeking care outside of the designated network often incurs higher expenses.