Florida Insurance Claims Adjuster License Practice Exam

What is a Preferred Provider Organization (PPO)?

1. An organization that offers comprehensive health services at a discount

2. A group of hospitals and medical practitioners aiming to reduce medical costs

3. An insurance plan for employee theft

4. A contractor agreement for supplying goods

The correct answer is: A group of hospitals and medical practitioners aiming to reduce medical costs

A Preferred Provider Organization (PPO) is a type of health insurance plan that provides access to a network of healthcare providers at a discounted rate. This means that if you have a PPO plan and visit a doctor or hospital within the network, you will pay lower out-of-pocket costs compared to visiting a provider outside of the network. Option A is incorrect because PPOs do not offer health services themselves, but rather have agreements with providers for discounted rates. Option C is incorrect because PPOs are not related to employee theft, but rather to healthcare services. Option D is incorrect because PPOs are not contractor agreements, but rather insurance plans.