What Is A Preferred Provider Network

What is a Preferred Provider Network? It is the organization of medical doctors, hospitals and health care providers who come to an agreement with an insurer, or third- party health care provider to  provide reduce health care to the insurer’s clients.  These networks are also know as a PPO ( Participating Provider Organization, or Preferred Provider Option).

One type of Preferred Provider Network is called the preferred provider organization. This organization insures that its members obtain a substantial discount far below the regularly-scheduled rates. It is in theory that this is a mutual benefit of the client and the insurance company. The insurance company is able to bill its clients at a lower rate because it is promised to be utilized  multiple times for its services, and  therefore the insurance company is assured that the organization will only use a provider that is a member.  The more clients that use the them for their needs, the more benefits the clients obtain threw lower rates - and not increases in premiums. The Preferred Provider Network obtains its income when its access fees to the insurance company for using its network.

They other type of PPN is called the Exclusive Provider Organization, and it is not much different. One difference is you can obtain service from a non-preferred provider if you simply pay more for going to them.  Unless there is a state mandate preventing you from going to a provider, you will not  be covered by your insurance for seeing a non-preferred provider. One reason a provider does not like its clients to obtain services from a such providers is because they often do not offer good care under the plan.

What is a Preferred Provider Network? It is an organization  of  medical doctors, hospitals and health care providers that have been approved by an insurer and a third-party health care provider that have come to an agreement on providing its clients with reduce health care.