PPO, or preferred provider organization, is similar to an HMO and offers a network of healthcare providers you can use for your medical care. These providers have agreed to provide care to the plan members at a certain rate.

How it works: Some differences between a PPO and HMO is that in a PPO, you have more choices for specialties and do not need to consult a PCP first, but out-of-pocket costs may be higher than in an HMO. You can see a doctor or go to a hospital outside the network and you may be covered. However, your benefits will be better if you stay in the PPO network.
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