A preferred provider organization (PPO) is a managed care plan that contracts with a network of providers who provide health care services to its plan members. Network providers agree to lower reimbursement rates for PPO members and, in turn, PPO members have a financial incentive to receive their health care from in-network providers. Members who go to out-of-network providers have higher cost-sharing responsibilities (deductibles, copayments and coinsurance).
What Is a Health Maintenance Organization (HMO)?
What Is a Point of Service (POS) Plan?
What Is a Self-Insured Health Plan?
What Are Insured Health Plans?