Preferred Provider Organization (PPO)
Preferred Provider Organization (PPO) is a type of health plan that contracts with medical providers, such as hospitals and doctors, to create a network of participating providers.
You pay less if you use providers that belong to the plan’s network. You can use providers outside of the network for an additional cost.
PPO plans are similar to POS plans in that both cover in-network and out-of-network providers.
♦ PPOs tend to have a wider choice of providers. With some plans, you may be able to use providers in another part of the country.
Unlike a POS plan, PPO members do not have to select a primary care physician.
♦ PPO plans tend to cost more than other plans.
The number of PPO plans being offered by insurance companies has been in sharp decline these recent years, with some markets having none.