PPO stands for which of the following?

• A. Preferred Provider Organization
• B. Primary Provider Organization
• C. Preferred Public Organization
• D. Primary Public Organization

Answer: (A)

The main idea being tested is recognizing common health insurance plan abbreviations. PPO stands for Preferred Provider Organization. In this arrangement, the insurer contracts with a network of providers who agree to discounted rates. You typically pay less by using in-network providers, but you can also see out-of-network providers and still receive some coverage, though at higher out-of-pocket costs. Often you don’t need a referral to see a specialist, which gives you more flexibility compared with some other plans.

The other options aren’t standard terms for insurance plans: the term about a primary provider is about the doctor who coordinates care rather than the plan itself, and the “public organization” phrases aren’t used in this context.