What Is A Preferred Provider Organization?

Preferred Provider Organization, or PPO as it is more commonly known as is a health insurance that most likely is acquired through a employer that encourages policy holders to use a network doctor by reimbursing at a higher percentage. If you decide to use a non network provider the rates are not as high.

Unlike an HMO or Health Maintenance Organization, you don't have to go through a primary care doctor for everything. In a PPO you can choose from a variety of different doctors with a variety of different specialties and as long as they are on the list they are reimbursed at the higher rate. If for some reason there is a doctor you want to see that isn't included on the Preferred Provider list then you will be reimbursed to see this physician but at a lower percentage with a higher out of pocket expense to you.

With an HMO most individuals know that they are in one very simply because they initially only go to see one provider and if they want to change then they contact the HMO and let them know that they are switching primary care providers. In a PPO since there is a list and you do receive coverage if you go outside of the plan. Usually if you are in a PPO plan you will find this information on your insurance card but if not it is a good idea to ask either your employer or your insurance company.

The PPO has often been confused with the indemnity plans of the past because they could receive care from most any doctor or specialist using just the one insurance card. As previously mentioned, the indemnity plans are no longer being used by employers and this usually means that many people are paying more in out of pocket money for office visits. This is generally true across the board simply because of the providers are not the right choice. If the same person does a little research they will find that even with a PPO plan, choosing and using the right doctor/s they can save some serious money.

If you have no idea what type of health insurance coverage you have, a great place to start saving money is to find out. It is very easy to make a PPO work in your favor and with the list of very well trained and approved doctors, you will have no problem picking a great one to help you stay healthy and save some well deserved money at the end of the day. Treating your family to lunch can truly be on you.