How to Understand Basic PPO Insurance

PPO stands for preferred provider organization, which describes a group of doctors who form what the American Heart Assocation calls a "provider network." (See Reference 1.) PPO health plans are different from HMO health plans in that PPO plans give users more freedom to choose a provider. There are several points to consider when deciding if a PPO insurance plan is right for you.

Instructions

• 1

  With a PPO Insurance plan, you are able to go outside the network for care, you won't need a referral to see a specialist and you will have more freedom to select your physician than you would with other health care plans.

• 2

  According to the American Heart Association, using network providers can give you lower deductibles, lower co-payments and higher reinbursements. (See Reference 1.)

• 3

  Understand that certain costs with PPO insurance plans can be higher. The California Department of Managed Health Care says that often you must pay a yearly deductible before the PPO starts to pay your bills. (See Reference 2.) And according to the American Heart Assocation, out-of-pocket expenses like co-payments and deductibles are often higher with PPO plans. (See Reference 1.)