APPO MEDICAL BUDGET is a plan in which APPO providers share claim risks with a self-insured employer. The employer and APPO set a medical budget for company health claim costs.

APPO providers have money withheld from their claims payment, which may be retained by the employer to offset their losses should they exceed their medical budget.

The APPO Medical Budget is offered as an option to employees. The employee may choose a standard or "basic" benefit option or the APPO Medical Budget option.

The Medical Budget option is designed to offer higher benefit levels then the basic benefit option. Employees selecting the APPO Medical Budget plan agree to use APPO providers exclusively.

Services by a non-APPO provider require a pre-approved referral.