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What are Preferred and Non Preferred providers for a PPO plan?

QuestionWhat are Preferred and Non Preferred providers for a PPO plan?

AnswerPPO is a network of physicians that have agreed, by contract, to discount their rates for the respective PPO members. These physicians, specialists are known as preferred providers, and PPO members are free to see any of them, without any reference from their primary physicians.

PPO members may also see non-contracted providers, these are known as non preferred providers. The co-payment fee for seeing a non preferred provider is generally higher than the preferred providers.