Most people are used to job-based health insurance, traditional Medicare is different. It does not include "catastrophic" coverage, an annual limit on the amount beneficiaries could pay. So people enrolled in Medigap Plans, which are also called Medicare Supplement Plans can be liable for thousands of dollars each year, including the $1,132 per-episode deductible for hospital admissions, hundreds of dollars in daily charges for hospital stays of longer than 60 days; a $162-a-year deductible for doctor care, plus 20 percent of charges for office visits and many outpatient claims.

Medicare modernized the plans that are offered in 2010.The plans are lettered from A-N. Pricing on these plans are based on the benefit levels each one offers. Each company offers the same plans, the premiums for these plans vary from company to company.

If you are on Medicare you need to be aware that you Medicare part A and part B does not pay 100% of your medical claims. You will have deductibles and co pays.

Choosing the right Medicare Plan provides seniors with additional coverage that Medicare doesn't provide. There are 11 Medicare Plans to choose from, Plan A to Plan N that offer different levels of health coverage.

Your Medicare Part A coverage goes into effect at age 65 automatically and is free. Part B also starts at age 65,unless you are disabled, but has a fee. You can waive Part B if you choose to. Part A covers hospitalization whereas Part B covers outpatient healthcare. Medicare only pays up to 80% of Medicare-approved healthcare costs, and also contains co-pays, deductibles.

You can purchase an insurance policy to cover the "gaps", they are called Medigap Plans. If you purchase the best Medigap Plan you will have 100% coverage for most of your medicare approved claims.

Medigap insurances deal with most of the top rated Insurance Companies and can sell you a modernized Medigap policy identified by letters A through N.

If you are on a Medicare Advantage Plan, you do not need to buy a Medigap policy. In fact, it is illegal for anyone to sell you a Medigap policy if you are in an advantage plan.