Differences Between PPO Insurance & Supplemental Insurance
Often people hate to look for health insurance because they face a sea of unfamiliar terms and an equally daunting number of different policies. Two types of policies often confused are PPO health plans and supplemental insurance plans.
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Function
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Supplemental health insurance covers bills that your policy doesn't cover.
Types
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A supplemental plan may supplement Medicare and pay deductibles and co-insurance. It also covers visits to non-military doctors for those on military insurance. Supplemental policies also include eyeglass insurance, per diem or per service cash payments for illness or injury, dental or specific disease policies.
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Identification
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PPO is an acronym that stands for preferred provider organization. PPO insurance companies contract with specific healthcare providers for lower-cost services.
Benefits
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Because of the contract, the insurance companies save money when policyholders use those specific providers. They pass the savings on to the policyholders with lower premium costs.
Warning
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If you use a physician outside of the preferred provider network, you pay higher deductibles, co-payments and out-of-pocket limits.
Significance
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PPO insurance is a broad health insurance plan. Supplemental insurance simply fills in gaps traditional insurance doesn't cover.
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References
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- Photo Credit Image by Flickr.com, courtesy of Shutr
