Preferred Provider Organization (PPO) Definition

A Preferred Provider Organization (PPO) is a type of health insurance plan that provides members with a network of healthcare providers, including doctors, specialists, and hospitals, from which they can choose for medical care. PPOs offer more flexibility compared to Health Maintenance Organizations (HMOs), allowing members to see any healthcare provider without needing a referral.

Members receive higher coverage and lower out-of-pocket costs when they use in-network providers, but they also have the option to see out-of-network providers at a higher cost. PPOs balance flexibility and cost control, making them a popular choice for individuals seeking a wide range of provider options.