Introduction To Insurance

Preferred Provider Organization (PPO) 

PPOs are a group of healthcare providers that contract with an insurance 

company, third-party administrators, or others (like employers) to provide medical 

care services at a reduced fee. There are two major differences between HMOs 

and PPOs in that: 

1.  The healthcare providers in the PPO are generally paid on a fee-for-

service basis as their services are needed, much like a traditional doctor's 

visit.  

2.  You are not required to use the PPO's healthcare providers or facilities - 

you can go outside the network. That said, going outside the network 

usually means paying a higher co-payment or deductible.