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Preferred Provider Organization (PPO)

Preferred Provider Organization (PPO) is a Groups of health care providers that contract with employer’s insurance companies, or third-party payers to provide medical care services at a reduced fee.

Preferred provider organization (PPO) is a managed care plan that contracts with health-care providers to provide certain medical services to the plan members at discounted fees. To encourage patients to use PPO providers, deductibles and coinsurance charges are reduced.

A relatively new form of health care coverage in which provider negotiates lower prices with certain physicians and hospitals and thereby reduces insurance costs.

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