PPO Plan Costs
The biggest disadvantage of a PPO insurance plan compared to other Advantage plans is the cost. Because these types of plans have more convenient options than HMO plans, they are more expensive. You should also know that some PPO insurance plans can offer Part D prescription drug coverage, but also at an additional cost.
Another cost of PPO plans comes from deductibles, which are included in most PPO plans. In order for your plan to begin paying for coverage, you will have to pay out of pocket until you reach the deductible amount.
Alternatively, there are some plan options that allow you to mitigate some of the higher costs. If you choose a plan with a copay option, it can reduce the costs of your premiums. Companies choose to lower premiums for copay plans because copays discourage people from seeking unnecessary medical services.
Finally, if you should know that if you receive out of network coverage at a high cost, your PPO coverage may not apply.