PPO stands for...

PPO stands for...

• A. Preferred Provider Organization; a plan that contracts with providers to create a network and you pay less if you use in-network providers.
• B. Patient-Provided Option; a plan with no network and high out-of-pocket costs.
• C. Primary Plan Offering; a plan requiring referrals for specialists.
• D. Public Provider Option; a government-run plan for state employees.

Answer: (A)

PPO stands for Preferred Provider Organization. The defining idea is that the plan contracts with a network of providers to obtain discounted rates. If you stay in-network, you pay less because of these negotiated rates and your usual cost-sharing. You do have the option to see out-of-network providers, but at higher out-of-pocket costs, and you typically don’t need a referral to see a specialist, giving you more choice than some other plans. The other descriptions describe terms or structures that don’t match how a PPO works—for example, a plan with no network or a government-run option—so they aren’t describing a PPO.

PPO stands for Preferred Provider Organization. The defining idea is that the plan contracts with a network of providers to obtain discounted rates. If you stay in-network, you pay less because of these negotiated rates and your usual cost-sharing. You do have the option to see out-of-network providers, but at higher out-of-pocket costs, and you typically don’t need a referral to see a specialist, giving you more choice than some other plans. The other descriptions describe terms or structures that don’t match how a PPO works—for example, a plan with no network or a government-run option—so they aren’t describing a PPO.