What is a PPO?

A PPO is a Preferred Provider Organization. If you use a provider (hospital, doctor or other medical provider) that is a member of the PPO you normally will pay a lower deductible and/or coinsurance amount. The insurance carrier can do this because the carrier and PPO have a written agreement to provide the carrier a discount for services provided to the carrier's customers. The insurance carrier passes on the savings to the customer in the form of lower deductibles and/or coinsurance.