A PPO plan, or Preferred Provider Organization plan, is a type of health insurance plan that contracts with medical providers, such as hospitals and doctors, to create a network of participating providers. The providers in the network have agreed to provide care to the plan members at a certain rate. PPO plans offer a lot of flexibility, as you can visit any in-network physician or specialist without a referral. However, you can generally go to out-of-network providers for covered services, but you’ll usually pay more. PPO plans typically involve two essential components: premiums and deductibles. The biggest advantage of a PPO is the plan’s flexibility, as PPOs come with a wide range of premiums, copays, and deductibles, so you can look for a plan that really caters to your financial and health needs. PPO plans are designed to gain some of the cost-saving features of an HMO (like having a network of providers) while giving members more flexibility than with a typical HMO.