June 15 2008
Preferred Provider Organization (PPO)
Tagged Under : Health Insurance, PPO, Preferred Provider Organization
Preferred Provider Organization or PPO, is another prevalent health care plan in the United States. The PPO plan is a lot like the HMO plan but there are a few distinct differences.
With the PPO plan you are not required to pick a primary care physician. You are able to see any doctor that you choose. There is a list of doctors that are in the network and you are strongly encouraged to see someone from that list however it is not required. If you decide to see a physician in the network it will most likely be less expensive. For example your plan my only cover 65% of the cost if you see a physician outside the network compared with covering 95% of the cost if you see a physician in the network. You also do not have to go through the referral process to see a specialist. The largest draw back to the PPO plan is the deductible and many times the higher co pay. HMO’s tend to keep their co pays fairly low however you don’t have the option of seeing the physician of your choice. PPO offer much more options, but those options might come at a higher cost to you.
