Florida Life and Health Insurance License Practice Test

Question: 1 / 400

What does PPO stand for, and how does it differ from HMO?

Primary Provider Organization; it has a smaller network

Preferred Provider Organization; it allows more flexibility in choosing healthcare providers

PPO stands for Preferred Provider Organization. This type of health plan is designed to give members greater flexibility when it comes to choosing healthcare providers compared to other plans, like Health Maintenance Organizations (HMOs).

One of the primary characteristics of a PPO is that it allows members to see any healthcare provider without requiring a referral, and typically offers better benefits for services received from providers within their preferred network. This flexibility is a significant distinction from HMOs, which generally require members to select a primary care physician and get referrals for specialist care.

Moreover, while members of a PPO can visit out-of-network providers, they usually face higher out-of-pocket costs compared to those who use in-network services. This balance allows for a more personalized approach to healthcare, catering to members’ preferences for provider choice and care pathways.

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Public Provider Organization; it is government-funded

Personal Provider Organization; it focuses on individualized care plans

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