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PPO (Preferred Provider Organization)

A health insurance plan that offers greater freedom in selecting your healthcare providers. You can see doctors and specialists without a referral, and you can also go out-of-network, although your costs will likely be higher.

Detailed Explanation

PPOs offer more choice in providers but often have higher premiums than HMOs.

Practical Example

Michael has a PPO health insurance plan. He can choose to see any doctor he wants, whether they are in-network or out-of-network, without needing a referral from a primary care physician.

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