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This report is an executive summary of R-3442/2. It describes the major features of preferred provider organizations (PPOs) and their growth and role in the health services market services; discusses the preexisting state regulatory environments and the various ways in which the states have adapted their environments to PPOs; outlines the major new provisions in state laws that might limit PPO arrangements and the actual effects of these provisions on PPO development; and draws policy implications from the findings.

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