What is a PPO plan?
-
A plan to assist the Professional Parents Organization.
-
A Preferred Provider Organization allowing preferred providers (doctors) to have direct contact with their policyholders.
-
A Preferred Provider Organization where providers contract with an insurance company or health plan to offer services
-
A plan for employees of organizations named with three letters, such as NBC and SBC
A PPO (Preferred Provider Organization) is a network-based plan where contracted providers agree to accept negotiated rates from the insurance company in exchange for patient referrals. Patients can use out-of-network providers but pay more. Option B incorrectly describes direct provider-patient contact without the insurance middleman that defines PPO arrangements.