What does PPO stand for?

What does PPO stand for?

• A. Primary Provider Organization
• B. Personal Payment Organization
• C. Preferred Provider Organization
• D. Preferred Provider Option

Answer: (C)

A key idea here is recognizing common health insurance acronyms. A PPO stands for Preferred Provider Organization, which is a type of managed care plan that contracts with a network of providers to get discounted rates for members. The big advantage is flexibility: you can see doctors inside or outside the network, and you don’t need a referral to see a specialist. Costs are lower when you stay in-network, but you can choose out-of-network providers at higher out-of-pocket costs. The other options aren’t standard names for this plan type, so they don’t fit. The established term is Preferred Provider Organization.

A key idea here is recognizing common health insurance acronyms. A PPO stands for Preferred Provider Organization, which is a type of managed care plan that contracts with a network of providers to get discounted rates for members. The big advantage is flexibility: you can see doctors inside or outside the network, and you don’t need a referral to see a specialist. Costs are lower when you stay in-network, but you can choose out-of-network providers at higher out-of-pocket costs.

The other options aren’t standard names for this plan type, so they don’t fit. The established term is Preferred Provider Organization.