preferred provider organization

health insurance

Also known as: PPO, participating provider option

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July 23, 2026

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A Preferred Provider Organization (PPO) is a type of health insurance plan that offers economic incentives to encourage plan members to use specific doctors, laboratories, and hospitals. These contracted providers agree to accept reduced fees and undergo supervision. This model contrasts with Health Maintenance Organizations (HMOs). The term PPO, an acronym for "preferred provider organization," was first used in 1982. A "preferred provider" can refer to the organization itself or a healthcare provider who is part of such an organization.123

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health insurance
…to the HMO is the preferred provider organization (PPO), also known as a participating provider option, which offers features of traditional fee-for-service insurance plans, such as the ability of patients to choose their own health care providers, but also follows the lower-cost strategies of HMOs. For example, those enrolled in…
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…to the HMO is the preferred provider organization (PPO), also known as a participating provider option, which offers features of traditional fee-for-service insurance plans, such as the ability of patients to choose their own health care providers, but also follows the lower-cost strategies of HMOs. For example, those enrolled in…
Read More