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Provide - reduced out of pocket expenses.
Greater flexibility - thus allowing for out of network
expenses.
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REMEMBER...regardless of which provider or type of coverage
you have, there are always some kind of limitations. Know what you can and
can NOT do.
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PPO stands for Preferred Provider Organization. Health insurance providers contract
a network of doctors and hospitals that are preferred by the company. These network doctors and hospitals charge a contracted fee for their services and
when you choose to see one of these preferred providers and the amount you pay is usually quite low. There is typically a small co-payment
(a fee per visit or service), (example: $15 or $20). It is important to
understand that there is higher charge for going outside of that healthcare provider network.
There is one plus however, the PPO is a more flexible arrangement than many other plans because the plan will pay some of the costs if you choose to visit a doctor, specialist, or clinic
outside the network.
Preferred provider organizations themselves earn money by
charging an access fee to the insurance company for the use of their network.
They negotiate with providers to set fee schedules, and handle disputes between
insurers and providers. PPOs can also contract with one another to strengthen
their position in certain geographic areas without forming new relationships
directly with providers.
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