Preferred Provider Organizations are very similar to HMOs in concept. PPOs are groups of physicians and hospitals that contract with employers, insurance companies, or third party administrators to provide health care services at reduced fees. Like HMOs, they may be structured as group or individual practices.

The primary differences between HMOs and PPOs are:

· PPOs do not provide benefits on a prepaid basis but on a fee-for-service basis as services are rendered.

· Fees are usually subject to a schedule used by all PPO participants.

· Plan participants do not have to use the PPO physicians or facilities. They can make a choice each time health care is necessary. However, PPOs usually have lower deductibles and lower co-payments.

Additional Information on Group Health Insurance

Comprehensive Major Medical Plan
Health Maintenance Organizations (HMOs)
Preferred Provider Organizations (PPO's)
Self Funded Plan
Cafeteria Plan
Conclusion

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