Preferred Provider Organization

Definition

PPO. A health care organization composed of physicians, hospitals, or other providers which provides health care services at a reduced fee. A PPO is similar to an HMO, but care is paid for as it is received instead of in advance in the form of a scheduled fee. PPOs may also offer more flexibility by allowing for visits to out-of-network professionals at a greater expense to the policy holder. Visits within the network require only the payment of a small fee. There is often a deductible for out-of-network expenses and a higher co-payment. A policy holder will have a primary physician within the network who will handle referrals to specialists that will be covered by the PPO. After any visit, the policy holder must submit a claim, and will be reimbursed for the visit minus his/her co-payment.

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They were a preferred provider organization and I really liked what they represented to me and my friends in the company.

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If your insurance is with a preferred provider organization, you must use physicians and other heath care facilities listed on the preferred provider list with the organization in order to receive the maximum payment benefits and keep out of pocket costs minimized.

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Most insurance companies prenegotiate fees with providers prior to the delivery of services; this has even given rise to Preferred Provider Organizations whereby members receive special pricing on medical services.

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preferred equity redemption cumulative stock (PERCS) Health Maintenance Organization