Which of the following statements about in-network providers and balance billing is true?

In-network providers are typically contractually obligated to adhere to the terms and conditions of their agreements with health plans, which includes a prohibition on balance billing. Balance billing occurs when a provider bills a patient for the difference between the provider's charge and what the health insurance plan is willing to pay. In-network providers agree to accept the payment terms from the insurance company as full compensation for services rendered, which means they cannot bill the patient for additional amounts beyond what the insurance plan pays.

This contractual agreement is designed to protect consumers from unexpected out-of-pocket costs that could arise if providers were allowed to charge patients for the balance after receiving payment from the insurer. By prohibiting balance billing, health plans ensure that in-network services come at a predictable cost to patients, thereby reducing financial burdens associated with healthcare services.

While other options might present characteristics related to in-network providers, they do not accurately reflect the nature of the agreement in place regarding balance billing. For example, in-network providers generally charge lower rates than out-of-network providers, but this does not relate directly to the issue of balance billing.