Alliant Health Insurance

What is a PPO?

Preferred Provider Organizations (PPO) are another type of managed care health plan.

With a PPO plan, the carrier (health insurance company) has negotiated with medical providers (doctors and hospitals) to give its members discounted rates for services, known as in-network benefits. PPOs will typically provide in-network benefits to insured members at substantial discounts while also allowing them to go out-of-network, however, the cost is typically much higher as those providers are not contracted with the health insurance company.

There are many types of PPO plans individuals can choose from:

  • Lower deductible PPO plans with richer benefits (i.e. office visit co-pays, and maternity)
  • High Deductible Health Plans (HDHP) which are PPOs that provide comprehensive coverage but at a lower monthly premium
  • Health Savings Account (HSA) compatible PPO plans
  • Catastrophic PPO plans which limit benefits primarily to hospital coverage

What kinds of people are PPOs best suited for?

  • As the cost for medical care continues to increase more consumers are looking to PPO plans for their individual & family health insurance solutions.
  • PPO plans give members the freedom to choose providers of their choice from a large network.
  • PPO plans offer the broadest range of pricing options from an economically priced catastrophic plan to a richer plan with lower out-of-pocket cost to the member.