With a PPO, you have the freedom to visit any doctor or hospital you want, both in and out of the plan's preferred network. When you choose in-network providers, you'll typically pay less out of pocket.
This is because your PPO has negotiated lower rates with those providers. If you go out of network, you'll generally have higher out-of-pocket costs, but your PPO will still provide some coverage.
What are the Benefits of a PPO?
Flexibility: You can see any doctor or specialist you want, without referrals.
No Primary Care Physician Requirement: You don't need to designate a primary care physician (PCP) and get referrals for specialists.
Larger Network: PPOs typically have larger networks than other plans, giving you more choices.
Out-of-Network Coverage: You still have coverage if you choose to see out-of-network providers, although at a higher cost.
What are the Drawbacks of a PPO?
Higher Premiums: PPOs often have higher monthly premiums than other types of plans.
More Out-of-Pocket Costs for Out-of-Network Care: You'll pay more when seeing out-of-network providers.
May Require Filing Claims: If you see an out-of-network provider, you may need to file claims yourself to get reimbursed.
Who Should Consider a PPO?
PPOs are a good fit if you:
Value flexibility and choice in healthcare providers.
Don't want to be restricted to a specific network.
Are willing to pay higher premiums for greater flexibility.
Frequently travel and want the option to see doctors outside your area.
When selecting a PPO, consider:
Monthly premiums
Deductibles
Copayments and coinsurance
The provider network (which doctors and hospitals are in-network)
Coverage for specific services or treatments you need
Prescription drug coverage
For those concerned about cost, our licensed insurance agency can help find insurance options to lower the cost or to cover the procedure.
This guide has provided a comprehensive overview of Preferred Provider Organizations (PPOs). For those seeking to deepen their understanding, we recommend exploring our guide on Health Maintenance Organizations (HMOs), which dives into this alternative plan type and its unique characteristics.
If seeking a licensed professional, consider our services. Our insurance advisors and client support team are here to assist you with your insurance needs.
