Preferred Provider Organization (PPO)

Preferred Provider Organization (PPO) A type of health plan that contracts with medical providers, such as hospitals and doctors, to create a network of participating providers. In other words groups of doctors and hospitals that contract with an insurer to provide medical services at a prearranged cost, thus allowing insureds to choose among these groups. In this case, you pay less if you use providers that belong to the plan's network. A substantial discounts on regularly charged rates to subscribed members. With a PPO, typically you are not required to coordinate your care through a single primary-care physician, as you are with an HMO, so you have a bit more flexibility if you need to see a specialist. However, it is up to you to make sure that specialists and any other health-care providers you visit do participate in your PPO network. If you have a PPO, medical services you receive from out-of-network providers may not be covered or may be paid at a lower level. HMOs and PPOs are both types of managed care (a way for insurers to help control costs), but the difference between the two is that while a PPO allows patients to choose any physician whether inside or outside of their network, HMOs restrict patients to physicians in their network. PPO plans are more comprehensive in their coverage and offer a wider range of providers and services than HMOs. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful