What does PPO stand for in health insurance?

PPO stands for Preferred Provider Organization, which is a type of health insurance plan that offers a network of healthcare providers to its members. This structure allows patients to seek medical services from a list of preferred providers who have agreed to provide services at reduced rates, enhancing cost-effectiveness for both the insurer and the insured.

Members of a PPO benefit from flexibility in choosing healthcare providers, including the option to see specialists without needing a referral, and the ability to receive care from out-of-network providers, although at a higher cost. The advantage of a PPO is that it combines the elements of managed care with greater flexibility, making it a popular choice among consumers seeking both affordability and choice in their healthcare options.

The other choices do not accurately represent the term PPO and are misinterpretations of its meaning within the context of health insurance.