What are PPO health insurance plans?

Understanding Preferred Provider Organizations (PPOs)

Preferred Provider Organizations (PPOs) generally give members the most flexibility about their choice of health care providers.

A PPO gives members access to a network of health care providers who charge reduced rates. Members often have a choice of using the PPO or non-PPO provider, but there is a financial incentive to use the PPO health care provider.

In other words, PPOs offer reduced health insurance costs for the health care providers within their network. To see out-of-network health care providers, members pay the difference between the health insurance companies’ allowable cost and the health care providers’ fee.