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What is a PPO?

Preferred Provider Organizations (PPO) offer a wide range of doctors and care providers, as opposed to standard HMOs, which offer a limited network from which to choose. An advantage of a PPO plan is the ability to visit any doctor or hospital. It is, of course, important to note that by remaining within the preferred provider list, you stand to save substantially on copayments. You should keep this in mind when selecting a physician. PPOs also allow patients to see a specialist without a referral from a primary care physician. The direct access to specialists is good for people who have chronic illnesses or require urgent care. The disadvantage of PPOs is that for all non preferred providers, PPOs cover only 80% of expenses, leaving the remainder to be paid out of pocket.


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