Preferred Provider Organization (PPO)
A health plan that offers flexibility to see any doctor, with lower costs when you use in-network providers.
What is Preferred Provider Organization (PPO)?
A Preferred Provider Organization (PPO) is a type of health insurance plan that offers flexibility in choosing healthcare providers. You can see any doctor or specialist without a referral, though you'll pay less when you use providers in the plan's network.
PPO plans typically have higher premiums than HMOs but offer more freedom. You don't need to choose a primary care physician, and you can see out-of-network providers (though at a higher cost). This makes PPOs popular with people who travel frequently or want maximum flexibility.
If you have a PPO that meets HDHP requirements (high enough deductible and out-of-pocket limits), you can still open an HSA. Many employers offer HDHP versions of their PPO plans specifically to enable HSA eligibility.
Frequently Asked Questions
Can I see any doctor with a PPO?
Yes. PPOs let you see any provider, but you'll pay more for out-of-network care. In-network providers are always the better deal.
Do I need referrals with a PPO?
No. You can see specialists directly without needing a referral from a primary care doctor.
Can I have an HSA with a PPO?
Yes, if your PPO meets HDHP requirements. Many employers offer PPO-HDHP combo plans specifically for HSA eligibility.
Related Terms
Health Maintenance Organization (HMO)
A health plan that requires you to use in-network providers and get referrals for specialists.
Exclusive Provider Organization (EPO)
A health plan that requires in-network care like an HMO but doesn't require referrals like a PPO.
High-Deductible Health Plan (HDHP)
A health insurance plan with a higher deductible and lower premiums that qualifies you to open an HSA.
In-Network
Healthcare providers who have contracts with your insurance plan to provide services at negotiated rates.
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