The federal health care program is a lifesaver for those older than 65 and also younger people with disabilities. But its coverage is hardly comprehensive.
"While Medicare does help with medical costs, it does not pay for everything," says Rutledge. Many times, it covers only a portion of your doctor visit or treatment. There are co-pays and/or deductibles for most treatments."
Because of this, most retirees will need a Medicare Supplement policy to help cover what Medicare does not. These so-called Medigap policies can be quite expensive, and annual increases in cost have become the norm.