Difference between preferred and non-preferred provider?

Question

I think preferred provider takes only what the insurance pays and writes off the rest. Am I right?

How can preferred providers do that without taking financial loss or do they have a way of covering for the loss?

Answer 1

Preferred providers have signed on with the insurance company to do the work at a discounted rate, and in exchange, the insurance company sends that provider more business.

It's a win-win for them.

-Stuart