Definitions for "Preferred Provider Organizations"
Health plans in which certain doctors and hospitals have agreed to participate. They are marketed to employer groups, and fees charged are usually reduced in anticipation of receiving additional patients.
Preferred provider organizations (PPO's) are managed health care insurance programs where patients have a limited amount of choice. They are better and more expensive than HMO's but are not as expensive or as good as indemnity plans. Premium – This is the money that the insurance company charges a patient or their employer to provide coverage for a loss. This is usually a monthly fee. The fee is larger for better insurance like indemnity insurance and is lower for lesser coverage like an HMO.
Health care delivery systems in which hospitals, physicians and other health care providers agree to provide health care services at a discount. A health care arrangement between purchasers of care (e.g., employers, insurance companies) and providers that provides benefits at a reasonable cost by providing members incentives (such as lower deductibles and copays) to use providers within the network. Members who prefer to use nonpreferred physicians may do so, but only at a higher cost. Preferred providers must agree to specified fee schedules in exchange for a preferred status and are required to comply with certain utilization review guidelines.