A PPO is a type of health insurance, which stands for "preferred provider organization." A PPO allows the policy holder to visit any doctor that is within its coverage network without prior approval from the insurance provider. This type of health plan provides the flexibility to change doctors and offices when needed. In California, there are different types of PPO plans available to families, seniors and businesses.
Individual and Family Plans
Individual or family PPO plans are insurance plans that individuals buy on their own. The price and services provided can vary significantly between different plans. Coverage may be denied to certain people based on individual medical history. For example, AIDS, cancer, diabetes and other serious conditions may automatically disqualify someone from eligibility for a PPO.
Senior Plans
Some PPO plans are geared specifically towards the needs of seniors, both in regards to services and costs. In fact, some senior plans are up to 50 percent cheaper than standard plans. This is made possible by a unique program called "Medigap." Medigap works as a supplemental insurance policy, which bridges areas of coverage that Medicare does not provide.
Business Plans
Business or group PPO plans are much more comprehensive than individual insurance offerings. They are provided by employers at an affordable cost to employees - often less than the cost of individual plans. Small business plans can generally cover up to 50 people.
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