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Multiple Choice

Which term describes a PPO?

PPO stands for Preferred Provider Organization, which is a type of managed care plan. In this arrangement, a network of providers agrees with the insurer to deliver services at discounted rates for plan members. Members still have the flexibility to see providers outside the network, but doing so usually means higher out-of-pocket costs. A common feature is that there’s typically no need for a primary care physician to gatekeep or refer you to specialists, though cost-sharing varies by whether the provider is in-network. The name itself highlights the core idea: a selected group of preferred providers who have contracted to offer discounted rates. So the term that describes this arrangement is simply Preferred Provider Organization.

PPO stands for Preferred Provider Organization, which is a type of managed care plan. In this arrangement, a network of providers agrees with the insurer to deliver services at discounted rates for plan members. Members still have the flexibility to see providers outside the network, but doing so usually means higher out-of-pocket costs. A common feature is that there’s typically no need for a primary care physician to gatekeep or refer you to specialists, though cost-sharing varies by whether the provider is in-network. The name itself highlights the core idea: a selected group of preferred providers who have contracted to offer discounted rates. So the term that describes this arrangement is simply Preferred Provider Organization.