Preferred Provider Organizations (PPO)

A type of health insurance plan that combines the savings of managed care, with the freedom of a fee-for-service policy.
Unlike the classic type of managed care you get from an HMO, with a Preferred Provider Organization you are able to step outside the “network” and still not pay full price for services.

How it works:

You choose a primary care physician (PCP) and get a list of doctors that are “preferred.”

If you stick to the list of preferred providers, the plan will reimburse you for a higher percentage of the cost than if you go outside the network.

PPO’s usually come with deductibles that typically range from $500 up to $2000 and may apply whether you are seeing a doctor inside or outside the “preferred provider” list or not.

Pro’s:

You can keep the same doctors or explore different ones without worrying about them being on the list.

Get appointments quicker, and have services performed faster.

Freedom to see a doctor wherever, whenever and still have some coverage.

PPO Con’s

Options come with a price

More expensive than HMO’s, even if you remain within the “preferred provider” list.

Paperwork and receipts to keep track of if you step outside the list.

High deductibles