What distinguishes in-network providers from out-of-network providers?

The distinction between in-network and out-of-network providers primarily lies in the contractual agreements they have with health insurance companies. In-network providers enter into contracts with the insurance company, which allows them to offer services at pre-negotiated, reduced rates. This arrangement benefits both the insurance company and the insured client, as patients can access medical services at lower out-of-pocket costs when they utilize in-network providers.

When patients see in-network providers, their insurance often covers a greater percentage of the costs, resulting in lower deductibles, co-pays, or co-insurance compared to services rendered by out-of-network providers. In contrast, out-of-network providers do not have such contracts with the insurance plan and typically charge higher rates since they set their own fees without any negotiated reductions.

Understanding this relationship illustrates why option C is the correct choice; it directly addresses the nature of the agreements that set in-network providers apart from their out-of-network counterparts.