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Monday, June 05, 2006

Preferred Provider Organization

PPO stands for Preferred Provider Organization. The purpose of the organization is to contract with doctors, hospitals and other health professionals. The PPO offers the participant a choice of healthcare professionals to go to at reduced prices, which they have negotiated on their behalf.

If you go for doctor other than this health professional, a higher pocket expenses of co insurance. The extra expense is to prevent too much utilization by participants. The PPO prevents abuse on the participants and a health care provider. Peoples prefer PPO plans than HMO plans because HMO plans is a restrictive one
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