Type of managed care plan that has a contract with a clause that allows the plan to assign the contract, or parts of it, to another third party. These contracts are considered legal in most states. If an explanation of benefits document has “network discount applied,” then investigate further into the claim to determine if a silent PPO is operating. Always precertify procedures and look at patients’ insurance cards even if the patients are established because this may help discover silent PPOs. Also called blind PPO, phantom PPO, discounted indemnity plans, nondirected PPO , or wraparound PPO .