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Medical billing is the process of collecting fees for medical services. A medical bill is also called as a claim that has to be collected from the insurance company. There are different types of insurance plans. What is the PPO plan? PPO stands for Preferred Provider Organizations and is today one of the most preferred kind of health care plan. More than 50% of the Americans have chosen to go for the PPO plan. Its popularity is because PPO is a system where doctors and hospitals, have made an agreement with the insurance companies to offer discounted fees to the company’s members.

Main advantages of PPO plans include,

  • Not mandatory to maintain a Primary Care physician
  • Can directly see a specialist without referral
  • Freedom to choose own doctor / hospital

The main advantage of going for a PPO plan is that while here you can choose a health service provider from outside the provider list, in a HMO (Health maintenance organizations) the insurance company does not pay for out-of-network services. However one must remember that more freedom will means more expensive medical bills.

There are many types of PPO plans and actual benefits will depend on different factors like,

  • Monthly premium amount
  • The amount of coinsurance obliged to pay
  • Whether treatment from the network/ outside
  • Annual deductible amount

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