What to Know About Preferred-Provider Organizations

You can choose from a group of providers who've contracted with your insurer to offer services at a discount rate. And there is more flexibility when it comes to seeing doctors outside the plan.

In the 1970s, preferred-provider organizations (PPOs) began changing the rules of fee-for-service care. PPOs steer employees to cooperating doctors and hospitals that have agreed to a predetermined plan for keeping costs down. A PPO is similar to a health maintenance organization, but you pay for care when it is received rather than in advance.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%
https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription


Why am I seeing this? Find out more here