What is a Preferred Provider Organization(PPO) heatlh plan?
A Preferred Provider Organization(PPO) is a collection of private-practice doctors, labs, cares facilities, and hospitals that contract with insurance companies and receive an agreed set rate for their services. PPO’s have a network of healthcare providers that the insured may use, however unlike the HMO, the PPO does not require you to use that network and allows you see doctors and go to hospitals which are outside of the network. In most cases, the member healthcare providers and the PPO sponsor have negotiated the price for each type of service in advance. PPO members typically pay for services as they are provided, and the PPO sponsor reimburses them for the cost of the treatment. Though members have the freedom to go outside of the PPO and will still receive coverage, they will pay more for seeing providers outside of the network. In other words, the coverage will be less. Physicians within a PPO can make referrals, but members can also refer themselves to doctors and specialists
