• Private health insurance can help defray the cost of medical bills but also has disadvantages.Paying Bills image by ne_fall_photos from Fotolia.com
  
  More than 46 million Americans lacked health insurance as of 2009, according to the Centers for Disease Control. Many classes of workers, including part-time, contract and freelance employees, as well as those who are unemployed, are not eligible for benefits through their employers. Because of the serious financial risks of going without insurance, many people choose to buy private health insurance. While there are some advantages to buying private insurance, such as being able to keep your doctor even if you switch employers, there also are several disadvantages.
  
  

Higher Costs

• Private plans for entire families can run as much as $1,000 a month, while employers have the advantage of joining group plans and receiving a discount for multiple subscribers. And without an employer's contribution, you have to pay this entire cost by yourself, in addition to co-pays and deductibles. Fortunately, these costs are tax-deductible.
  
  

Availability Restrictions

• Employer health plans are more likely to accept people regardless of personal health history, but private health plans are more likely to reject people with serious health conditions, such as a history of cancer, heart disease or diabetes. Some people with these pre-existing conditions are unable to get private insurance at all, or must join high-risk insurance pools that charge very high rates. Private insurance providers also commonly charge higher premiums to smokers and healthy people as they get older, which employer plans usually do not.
  
  

Coverage Limits

• To keep premiums low, people are sometimes tempted to choose private plans with cheaper monthly premiums, but higher deductibles and more limits on covered services. This approach saves money in the short run, but can discourage people from seeking needed care because of concerns about cost. This can ultimately cost the person much more if needed care is delayed too long. In group plans through a job, the money employers contribute can reduce costs significantly enough to help people choose higher coverage levels.
  
  

Non-Automatic Payments, Renewals

• Any costs you contribute toward health insurance through your employer are regularly deducted from your paychecks, and such plans usually renew automatically or have benefit re-enrollment periods each year. With private health insurance, you will have to set up an automatic-debit program so that you don't forget to send in payments. Also, some private insurers have the right not to renew your policy.
  
  

Added Paperwork

• Most employer health plans have benefit administrators who handle the paperwork related to claims. Private health insurance usually requires you to keep track of claims and submit paperwork on your own. Most employer plans are also administered by human resources representatives who may answer questions and act as liaisons between you and the insurance company.