Preferred Provider Organization (PPO)
Preferred Provider Organization (PPO) is an insurance plan with greater freedom to policyholders in terms of choosing their doctors and health providers. There is a network of doctors and health providers covered in the plan and their services cost policyholder less than the expenses they may incur by opting for a health provider who are not covered in the plan.
Features of a PPO plan
You don’t need to opt for a primary care provider for a PPO plan and hence you don’t need referral from your primary care provider before you can see other specialists. But the cost of PPO may be more than some plans. Policyholders may have to pay an annual fee or deductible before PPO plan covers your expenses. You may also have to pay certain amount of money for some services.
Benefits of a PPO plan
With a PPO plan you have the freedom to choose your health providers. You can also file certain claims for health services that are not part of the PPO. When you buy a PPO plan, it is to your benefit to use services of health providers listed with the insurance company. But unlike other insurance plans like HMO, PPO covers expenses for health services outside of its network. But the benefits to policyholders may, of course, vary.