If you are enrolled in the traditional Medicare program, there's no annual dollar limit on your out-of-pocket expenses.  Medicare was never intended to cover all your health care costs, so an illness or injury could end up costing you quite a bit of money.

Retirement should be a carefree time in a person’s life, to be enjoyed without the worry of how to pay for medical care.  Many retirees have worked hard and saved throughout their entire career and don’t want to risk losing everything because of medical expenses not covered by Medicare.  That’s where Medicare supplement insurance (also known as Medigap insurance) comes in. Medigap or Medicare supplement insurance helps fill the gaps in Medicare by paying for deductibles, coinsurance and benefits not covered under original Medicare.