There will be changes in 2010 to Medicare Supplement Insurance, known also as Medigap. This program is a private insurance provide coverage that helps defray some of the costs the federally funded basic Medicare does not cover. Those who are eligible for Medicare are eligible for this program.

Some supplemental policies also cover certain benefits not provided under the Federal medical insurance program. However, the policies do not cover gap costs under other types of health coverage, such as Medicare Advantage Plans, stand-alone Medicare Prescription Drug Plans, employer and union group health insurance, Medicaid, TRICARE or Veterans Administration benefits. Excepting Medicare Prescription Drug Plans, insurers generally are not permitted to sell you a supplement insurance policy if you are enrolled in these other health plans. The Medigap policies also do not cover long-term care, vision, dental care, hearing aids and private nursing. The policies are offered by private insurance companies licensed to operate in each state and regulated by the state department of insurance. The Medigap benefits are defined by the Federal government and are annually renewed automatically. A policy will only cover one person.

Medigap policies are standardized and have specified benefits that can be easily compared. Insurers are not obligated to offer every type of plan; state law may also impact this choice. Prior to the changes of 2010, Plan A must be offered, if any other plan is offered. Effective 2010, either Plans C or F must also be offered in addition to Plan A. The plans extend from Plan A through N.

Every plan has a different combination of what is covered. For eligibility, there must first be enrollment in Part A and B of Medicare. Amongst them, Plan A offers the least amount benefits and costs less than the others. Plans E, H, I, and J will no longer be offered from June 2010 for new eligible individuals. There are two new plans, M and N. In Plans A, B, C, D, F, and G the benefits offered will no longer be the same for the newly eligible. The Medicare Part A Hospice coinsurance for outpatients is to be covered from June 2010 in Plan K and Plan L to varying degrees. Plans K, L, and N require payment of a part of coinsurance and copayment for Medicare Part B with some premium reduction. Other plans pay in full Part B coinsurance and copayment amounts.

All plans offer certain common benefits. Beyond that, the provisions may be different. For instance, in Plans C to D, F and G is foreign emergency coverage is a provision. This coverage extends to what is provided by Medicare in the United States.

Other examples of variation include the fact that certain plans will pay the deductibles of Medicare Part A and B. Some will provide for Part B excess doctor billings, which might be useful for some. Coverage of recovery at home charges is offered in some of the plans. Differing cost sharing may be also be required despite the offering of similar benefits.

Premiums may differ between plans offered by different companies even if the benefits are not different. Insurers cannot deny for a preexisting condition, if the plan is bought in the first half year of Medicare enrollment. Claim forms may need to be filed if your physician or medical care facility does not file.

Premiums may increase due to inflation adjustment and the methods used in calculation. There are three methods used in premium setting. Premiums rise as you grow older in the attained age method. The issue age premium rises with inflation adjustments only, as it does rise with age based on the age when plan was purchased. Those in the same area are charged according to the community rate method. The optimal choice would be to decide the benefit combination that is most suitable and then purchasing it from the company charging the lowest premium.

Get the exclusive low down on 2010 changes for Medicare Supplement Insurance coverage now in our comprehensive Medigap and Medigap Plans overview.