What does PPO stand for in the context of insurance agreements?

In the context of insurance agreements, PPO stands for Preferred Provider Option. This type of health insurance plan offers a network of healthcare providers that have agreed to provide services at reduced rates for insured individuals. Members of a PPO plan have the flexibility to choose their healthcare providers, both within and outside the network. However, selecting providers within the network usually results in lower costs, making it a cost-effective option for consumers.

PPOs are designed to provide a balance between the freedom to choose healthcare providers and the affordability of care, which appeals to many individuals looking for insurance options that don't limit them to a specific network. This structure allows policyholders to receive care without needing a primary care physician to make referrals for specialists, enhancing access to a wide range of medical services.