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A PPO is another type of managed care plan. Under a PPO, the insured may seek medical services from those within the approved network, or even those outside of it. If PPO members do go outside the network they will receive a lower reimbursement and may pay a higher deductible, co-payment, etc.
The concept of the PPO is that the providers will provide medical services to the PPO members at a reduced price. PPO members will then use the preferred providers more and these providers should receive an influx of business. The PPO themselves benefit by charging an access fee to the insurance companies for the use of their networks.
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