Preferred provider organization (PPO),
Definition of Preferred provider organization (PPO):
A preferred provider organization (PPO) is a medical care arrangement in which medical professionals and facilities provide services to subscribed clients at reduced rates. PPO medical and healthcare providers are called preferred providers. .
An alternative to an HMO network available under certain health insurance plans. A network of care providers who treat members of a health insurance plan for a pre-determined fee. The insured may be required to pay a small co-payment and the rest of the charge is usually covered by the plan. This type of network is less restrictive than an HMO, as the insured is free to choose a hospital and physician.
Most health insurance plans are serviced through either a preferred provider organization (PPO) or a health maintenance organization (HMO). A PPO is a managed-care organization consisting of medical professionals and facilities such as primary and specialty physicians, hospitals, and other healthcare professionals. These professionals contract with the insurance provider to render subscribed participants services at an agreed-upon reduced rate. In exchange for reduced rates, insurers pay the PPO a fee to access the network of providers.
How to use Preferred provider organization (PPO) in a sentence?
- PPO medical and healthcare providers are called preferred providers. .
- Choosing between a PPO and an HMO generally involves weighing one's desire for greater accessibility to doctors and services versus the cost of the plan.
- PPO plans are more comprehensive in their coverage and offer a wider range of providers than HMO plans, but come at a higher cost.
Meaning of Preferred provider organization (PPO) & Preferred provider organization (PPO) Definition