What Does PPO Stand For With Health Insurance? 
PPO is a `` Preferred Provider Organization , '' which is a network of doctors , hospitals and other facilities that will offer their services at contractually lower prices to members affiliated with them . Often the discounts are substantial which saves individuals and families hundreds or thousands of dollars . It is a medical care arrangement where the insurers may pay a fee to become part of the actual Network . However , since their charges for procedures and other treatment is reduced , they may gain market share by writing more policies . Most major health insurers offer many PPO plans that help keep premiums low , while providing top-notch treatment and service . 