What is the primary goal of a Preferred Provider Organization (PPO)?

The primary goal of a Preferred Provider Organization (PPO) is to channel patients to providers that offer discounted services. PPOs establish a network of healthcare providers who agree to provide services at reduced rates for members. This arrangement allows members to have more flexibility in choosing their healthcare providers while still reaping the benefits of lower out-of-pocket costs when they use the providers within the network.

Members are encouraged to seek care from these preferred providers, as doing so usually results in enhanced coverage and lower costs. However, they still have the option to visit out-of-network providers, albeit at a higher cost. This structure aims to manage costs while providing patients with a range of choices, thus promoting the use of providers willing to offer discounted rates for their services.

In contrast, limiting patient access to providers would contradict the PPO model, as these organizations aim to offer flexibility and choice. Comprehensive coverage for all patients is not specific to PPOs, as they often have specific networks that could limit access. Lastly, increasing insurance premiums is generally not a goal of PPOs; instead, they strive to control costs while maintaining quality care.