A preferred provider organization has characteristics of both an IPA and an indemnity plan.

Question

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A preferred provider organization (PPO) is a type of healthcare plan that provides some characteristics of an Independent Practice Association (IPA) and an indemnity plan. Like an IPA, a PPO includes a network of healthcare providers who have contracted with the plan to provide services to members at a discounted rate. However, like an indemnity plan, PPO members are also allowed to see providers outside of the network, although they may pay a higher out-of-pocket cost.

A Preferred Provider Organization Has Characteristics of Both an IPA