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What is a PPO?

 

What is PPO?

The Bankrate.com financial term of the day is: "PPO."

PPO is a type of health insurance, and it stands for "preferred provider organization." It's another flavor of managed care, similar to an HMO, or health maintenance organization, though it offers more flexibility in going outside the plan's network. With a PPO, your out-of-pocket costs will be lower if you stay in-network for your health care, but the plan will still pay a portion of the charges if you happen to go to a non-network doctor or hospital.

A PPO is like an HMO, though this type of health plan offers more freedom of choice.

To compare insurance policies, get a quote by visiting the Insurance section at Bankrate.com.

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