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Preferred Provider
Organization
The Preferred
Provider Organization (PPO) is a form of managed care similar to an indemnity
plan.

Choice:
The Preferred Provider Organization (PPO) plan makes arrangements
with doctors, hospitals, and other providers to agree to accept lower
fees from the policyholder. As a result the co-payment should be lower
than going outside the network for care. This plan allows the primary
physician and the individual policyholder to make referrals to other doctors,
including ones outside the plan.
Costs:
There is an identified co-payment (a set amount) for services.
When the policyholder chooses to use the providers within the system the
payment is less than for those not participating in the plan. Using an
outside provider means the policyholder will have to meet the deductible
and pay a higher charge for coinsurance.
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