What is a PPO?

Answer:
PPO stands for preferred provider organization.

This is a heath care insurance that has a list of providers (doctors and other health professionals and organizations) that have agreed to provide medical services at a prenegotiated or discounted rate to the insurance company for its insured.

A PPO is less restrictive than an HMO because it allows patients to see doctors not on their preferred provider list, with a lower amount of services covered.

For example, if you go to a doctor that is not on your HMOs list of providers, the HMO will likely deny coverage and you will be left to pay the bill yourself. If you have a PPO and do the same thing, they will likely pay but at a reduced rate. So, instead of paying 80 to 100 percent of the services, they may only cover 40 to 60 percent.


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