Glossary · Plan types
What is a preferred provider organization (PPO)?
A PPO is a health plan that contracts with providers to form a network. You pay less if you use network providers, and you can use providers outside the network for an additional cost, without a referral.
Definition and figures from HealthCare.gov, checked October 23, 2026. This page explains the term; it does not recommend a plan.
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PPO: the facts
| Item | Fact | Source |
|---|---|---|
| Out-of-network care | Covered for an additional cost | HealthCare.gov: Health insurance plan and network types |
| Referrals | Not needed to see out-of-network providers | HealthCare.gov: Health insurance plan and network types |
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Questions
What does PPO mean in health insurance?
A PPO is a health plan that contracts with providers to form a network. You pay less if you use network providers, and you can use providers outside the network for an additional cost, without a referral.