What type of healthcare plan is a Preferred Provider Organization (PPO)?

A Preferred Provider Organization (PPO) is designed to provide flexibility in choosing healthcare providers. It allows members to receive care from both in-network and out-of-network providers. When members choose to see in-network providers, they typically pay lower out-of-pocket costs compared to using out-of-network providers.

This structure gives PPO enrollees the advantage of accessing a wider range of medical services and specialists without needing referrals, which enhances their ability to manage their healthcare according to their personal preferences and needs. While the plan encourages using in-network providers through financial incentives, it does not limit members to those providers, setting it apart from more restrictive healthcare plans.