You will be eligible for Medicare coverage once you reach age 65, but basic Medicare coverage (also known as Original Medicare) does not cover all healthcare costs. There are supplemental insurance plans called Medigap policies that supplement basic Medicare coverage. A Medigap policy helps to defray the costs not covered by the Original Medicare plan and reduce out-of-pocket expenses.

Keep in mind some of the following points regarding Medicare, as you consider your supplemental coverage needs:

• Original Medicare benefits are limited; co-payments and deductibles change each year. In 2006, as a hospital inpatient, someone covered by Original Medicare would still be responsible for some of the hospital costs and institutional costs under Part A.
• Under Part B, which pertains to physician, medical and other health services, will pay 80% of "Medicare-approved" amounts.
• Medicare does not provide coverage during foreign travel. Medicare Supplement policies, or Medigap, will cover many of these expenses.

There are twelve standardized options for Medigap (Plans A through L) offered by private insurance companies. While the Medigap policies offer standardized coverage, costs vary by insurer.

To learn more about what plan may best suit your needs, visit Medicare's Medigap information.