What does a PPO stand for in health insurance terms?

In health insurance terminology, PPO stands for Preferred Provider Organization. This type of plan offers a network of healthcare providers that have agreed to provide services at reduced rates to members of the plan. The structure allows patients more flexibility in choosing providers compared to some other plan types, such as Health Maintenance Organizations (HMOs).

Members in a PPO can see any doctor or specialist, but they save money by using providers that are part of the network. If they choose to go outside the network, they can still receive coverage, but it often comes with higher out-of-pocket costs. This approach encourages patients to use network providers while also giving them the option of seeking care outside that network if they prefer or need to.

The other options, while they might sound plausible, do not represent the common understanding of the acronym PPO in the context of health insurance. Preferred Provider Organization is widely recognized in the healthcare industry and provides a clear structure of how patients can access care and manage their healthcare spending.