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Employer Benefits IQ
Plan Design

Preferred Provider Organization (PPO)

A health plan with a network of preferred providers and out-of-network flexibility.

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Full Definition

A PPO is a type of health plan that contracts with a network of preferred providers at negotiated rates. Members can use out-of-network providers but pay higher cost-sharing. PPOs are the most common employer health plan type in the U.S. because they offer broad provider access without requiring referrals. PPO network quality — discount depth, access, and adequacy — varies significantly across carriers and geographies.