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Health Maintenance Organization

Indemnity Plan

Preferred Provider Organization

Point of Service Plan

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Preferred Provider Organization

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