Preferred Provider Organizations (PPOs) Explained

Preferred Provider Organizations (PPOs) are networks of physicians, hospitals, and other healthcare providers. The health insurance plans associated with PPOs save you money when you use a physician inside the network, but they will also provide you with coverage from outside the network.

You can typically choose a provider from a preferred-provider list or go to an outside provider. Preferred providers are doctors and hospitals that have agreed to provide services at a discounted fee. This gives you an incentive to stay within the network, and if you go outside, it will cost you more for treatment or visits.

Advantages of PPOs

  • You can choose to receive treatment from a doctor of your choice.
  • You are not forced to choose a therapist with less training or experience just because s/he is the only therapist on your “list” with an open appointment.
  • You and your physician decide what treatment is most appropriate, not an insurance claim reviewer.
  • Treatment is automatically covered up to your plan maximums.
  • Treatment is confidential, and treatment records are protected by law.
  • If you are unhappy with your doctor, you can easily change to another doctor without needing permission from the insurance company.

Disadvantages of PPOs

  • You sometimes have to pay an annual deductible.
  • You are responsible for a percentage of the cost of your doctor visits.
  • The total cost of treatment may be a little greater.

Call Jeff Pennington today at 1-877-221-6198 to discuss your needs and get a selection of life insurance quotes for your situation. Jeff can answer all of your insurance questions and will provide friendly personal advice.

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