Preferred Provider Organization
What Does Preferred Provider Organization Mean?
A preferred provider organization (PPO) is a healthcare network that allows policyholders of a specific insurance company to choose from a wide range of doctors within the insurer’s network. While policyholders can still receive coverage when visiting out-of-network doctors, they will generally incur higher out-of-pocket costs for those services.
Insuranceopedia Explains Preferred Provider Organization
Members of PPOs can visit specialists or other doctors without needing a referral from a primary care physician. This flexibility is often viewed as a significant advantage for policyholders, as it allows them greater freedom in managing their health care. Preferred provider organizations serve as an alternative to health maintenance organizations (HMOs). While both PPOs and HMOs have networks of covered healthcare providers, HMOs do not provide coverage for medical expenses incurred with out-of-network providers.
