Preferred provider organization
Preferred Provider Organization (PPO, pronounced /ˈpiːpiːˈoʊ/) is a type of health insurance arrangement that allows plan participants relative freedom to choose the doctors and hospitals they want to visit.
Etymology
The term "Preferred Provider Organization" originates from the concept that insurers have a list of "preferred" providers, which are medical professionals and institutions that have agreed to provide services at a discounted rate to the insurer's policyholders.
Overview
In a PPO, the policyholder pays a lower amount out-of-pocket for services if they choose a provider within the PPO's network. If the policyholder decides to receive a medical service from a provider outside of the network, they may have to pay a larger portion of the cost. However, unlike a HMO, a PPO plan allows patients to see any doctor without a referral, including specialists.
Related Terms
See Also
External links
- Medical encyclopedia article on Preferred provider organization
- Wikipedia's article - Preferred provider organization
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