Why You Should Register with a Preferred Provider Organisation

The cost of providing medical cover for company employees can become unsustainable if employers don't adopt measures to keep those costs in check. This article discusses why it would be wise for you to enroll your company with a preferred provider organisation to cover the medical needs of your employees.

Wider Medical Care Provider Choices

Preferred provider services are increasing in popularity due to the broader spectrum of healthcare providers that they work with. Each of your employees is therefore likely to be pleased that they have a choice in determining who will provide primary healthcare to them. This is unlike the traditional medical insurance schemes that were viewed as too restrictive in terms of where beneficiaries got their medical care from.

Greater Employee Involvement in Cost Cutting

Another way that preferred provider organisations are good is that they get their beneficiaries to participate in schemes geared at preserving their health. For example, the service provider may offer incentives to overweight individuals who meet their weight-reduction targets. Such employees are likely to have fewer days off work once they participate in those wellness programmes. Productivity may therefore increase as employees reduce the number of times that they call in sick.

Lower Insurance Costs

Preferred provider services also have the advantage of enabling you to decide what degree of specialist care your employees should enjoy under the scheme. You can customise the healthcare package that you obtain from those providers based on the specific needs of your employees. Such customisation reduces the costs that would have been incurred to cover conditions that are unlikely to arise in your employees.


You are also likely to benefit from the cost-sharing models used by preferred provider organisations. These entities require a beneficiary to make a predetermined payment during each visit that they make to a healthcare provider within the network. Such a transparent method is good because your employees can be sure that they are receiving value for money. The cost-sharing is also another avenue for you to reduce how much you invest in the medical care of your employees.

Different preferred provider organisations offer services that may vary. For example, some may have larger networks of medical service providers when compared to others. It is therefore vital for you to contact several preferred service providers so that you assess their offer before selecting the one in which to enroll your company and employees. Keep researching those organisations so that you switch to the ones whose products offer greater value to your company.