What is a Preferred Provider Organization (PPO)?
A Preferred Provider Organization represents a health plan type that connects with medical providers, including doctors and hospitals, to construct a group of participating providers. PPOs offer discounted rates for services from a network of medical professionals and facilities. People in the plan can go to both in-network and out-of-network providers, but it costs less if they choose providers within the plan’s network. PPO plans usually have higher premiums, copays, and deductibles compared to other managed-care choices like Health Maintenance Organization (HMO) plans. PPOs offer more flexibility and a broader range of providers and services than HMOs.
Geeky Takeaways:
- A Preferred Provider Organization is a health plan that collaborates with hospitals and doctors to establish a network of participating providers.
- PPOs provide discounted rates for services offered by the network of medical professionals and facilities.
- Plan participants have the option to choose both in-network and out-of-network providers, but opting for in-network providers is more cost-effective.
- PPO plans typically entail higher premiums, copays, and deductibles when compared to alternative managed-care options.
Table of Content
- What is the Exclusive Provider Organization (EPO)?
- How do Preferred Provider Organizations Work?
- Costs of a PPO Plan
- Difference between Preferred Provider Organization and Health Maintenance Organization
- How do PPO Deductibles Work?
- Advantages of PPO Plans
- Disadvantages of PPO Plans
- Difference between a PPO and a POS
- Frequently Asked Questions (FAQs)