PPO

• Preferred Provider Organizations (PPOs) offer a wide selection of health professionals to their clients. A PPO customer can choose a health professional from a list of medical and dental providers that have contracts with the insurer to provide services at agreed-upon rates. PPOs often have both in-network and out-of-network lists. If you choose a doctor from within the PPO network, you receive the full benefits available under the policy. If you visit a doctor outside the network, you are still eligible for insurance coverage, but the benefits are often restricted, resulting in greater out-of-pocket costs for you.
  
  

HMO

• By contrast, Health Maintenance Organizations (HMOs) tend to offer less flexibility to the customer in return for a greater level of benefits than PPOs typically offer. For example, HMO plans typically require you to choose a single doctor as your primary care physician, and this doctor then refers you to specialists or other health care providers as needed. This system disallows you from choosing any doctor you wish but provides benefits such as low or no deductibles, low out-of-pocket expenses and decreased paperwork.
  
  

Dental PPO

• A dental PPO insurance plan applies the principles of PPO insurance to a dental network. You are free to choose any dentist you like from either the in-network or out-of-network lists, and you receive an agreed-upon level of benefits from the insurer according to the list you use. These types of policies are popular among both employer-provided and individual dental insurance plans because they offer the customer flexibility and freedom.
  
  

Drawbacks

• PPO dental insurance does have some drawbacks. The freedom you receive comes at the expense of some policy benefits. PPO plans typically have deductibles. They may be small, but they can add up, especially with plans that cover several family members. They may also have dollar limits on benefits. For example, a restrictive PPO plan may provide up to $1,000 per year of benefits. If you receive treatment that exceeds this cost, your policy will pay its maximum benefit, and you are responsible for the rest. Weigh the negatives before deciding whether PPO insurance is right for you.