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Health Insurance: PPOs 101

History of PPOs

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PPOs developed out of negotiated fee arrangements used in connection with workers' compensation laws in the states of Washington and Oregon around 1911.

Modern PPOs emerged in the 1980s.

Originally PPOs were merely networks of health care providers, including doctors and hospitals. Such providers are paid on a fee for service basis.The PPO then markets its network to insurance companies and self insured employers.

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