The health care industry has changed significantly since the inception of Medicare in 1965. The needs of senior citizens have also changed. Medical costs have risen steadily and exponentially.

Although Medicare was not intended to cover 100% of the typical healthcare expenses, it now covers only about half of what the elderly need. As a result of the increased need, the government created Medicare supplemental plans to help defer costs. These plans are offered through private insurance providers that meet specific state and Federal guidelines relating to consumer protection. These Medigap insurance companies may offer all 12 of the plans, or only some of them.

Medigap policies are government regulated plans developed to augment coverage and bridge the gap between what is paid by the program and the out-of-pocket expenses of the program beneficiaries.

These standardized plans are purchased through approved Medigap insurance companies. Although the benefits are the same from one provider to another, the premiums may not be. Some will be more competitive than others. The methods used to create the monthly premiums often vary by state as well as by provider. As a result, some plans will become more expensive as time goes by, while others will only see incremental inflationary increases.

If you consistently spend time throughout the year in more than one state, make sure that there is policy coverage in all areas. All of the supplemental plans offered by Medigap insurance companies cover the same core benefits, but they all have a different combination of additional benefits. The 12 plans are labeled Plan A through Plan L.

Plan A is the least expensive, with the shortest number of additional benefits, while Plan J is the most expensive. It contains one of the largest benefit lists. As of June 2010, the new sales will be discontinued, although existing policyholders can keep the plan.

Supplemental Plans K and L are different than the others and there are a fewer number of Medigap insurance companies that offer them. They cover more of the original Medicare program’s “gaps,” but pay a smaller percentage of the costs.

This is balanced out by the fact that there is a cap on the total out-of-pocket expenses. Once the cap is reached, 100% of the costs are covered. Medigap plans were developed and implemented to help senior citizens maintain their quality of life by helping to cover medical costs. Choose a provider that has affordable premiums and plans that suit your health care needs.