PPO
(PREFFERED PROVIDER ORGANIZATION)
A PPO, or
Preferred Provider, is when a lower premium is exchanged for using certain
doctors and hospitals that are in an insurance company's network. These doctors
and hospitals are deemed "reasonably priced" by the insurance companies, which
saves the insurance companies money, which in turn will save you money in
premiums. Often times you receive more "perks" for using a PPO such as
doctor copays and a better preventive care benefit.
If you have a PPO policy you may still be covered even if you go out of the
network for treatment, however the benefits will be reduced such as a higher
deductibles and no doctor copay for out of network doctors. However if you have
an emergency situation where you cannot use a PPO doctor or hospital you will
still receive full benefits.
A PPO is a good choice if you want to reduce your premiums and still receive
good coverage. Often times a PPO actually offers better coverage.
