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Answer: According to data from the 2000 BLS survey of benefit plans, about half (51 percent) of all full-time private industry workers covered by an employer medical care plan were enrolled in a Preferred Provider Organization (PPO). Preferred-provider plans allow enrollees to obtain services from any provider, but offer incentives if services are obtained from selected providers.

About 40 percent of those with an employer medical care plan were enrolled in a Health Maintenance Organization (HMO), a plan which provides comprehensive medical services on a prepaid basis. Only about 10 percent were in traditional fee-for-service plans which pay for medical services from any provider as expenses are incurred.

Since a 1997 survey of larger private establishments, enrollment in PPOs has expanded considerably while enrollment in traditional fee-for-service plans has declined. For more information, see table 14 of the 2000 benefits survey publication, found at http://www.bls.gov/ncs/ebs/sp/ebrp0001.pdf. Definitions of health insurance plans and other terms may be found at http://www.bls.gov/ncs/ebs/sp/healthterms.pdf.

Last Modified Date: November 19, 2002