All About PPOs
PPOs, or Preferred Provider Organizations work in a manner similar to HMOs. Like HMOs, they provide savings to their clients by creating a network of contracted medical professionals who offer their services at a discount.
Unlike HMOs, however, PPOs offer 'out-of-network' options for their customers. A doctor within a PPO can refer a customer to another doctor outside of the network, and the patient will still receive coverage from their insurance provider. Patients can also 'refer' themselves to an out of network doctor. This usually results in the patient having to pay at least a percentage of the bill, depending on the rates detailed in their plan, instead of the simple co-pay if it were an in-network medical facility.
HMOs and PPOs are so similar, what it will ultimately come down to for most is the question of whether it is worth reduced premiums to have slightly less freedom, or if it is more of a benefit to be able to use almost any doctor available at a higher cost. By carefully evaluating both their budget and their medical needs consumers can make an informed decision, most beneficial to their current and future health.