If you are over the age of 65 you probably already have some kind of Medicare health plan, whether it is Medicare Part A or Part B. But in either case there are going to be gaps in your Medicare insurance, basically what this means is that there are going to be certain services that you are going to need that are not covered by Medicare so you will have to pay for them out of pocket which can get rather expensive. Or you have the option of purchasing Medicare supplemental insurance, which is also called Medigap insurance. This insurance requires you to pay a premium each month but the insurance is designed to cover the gaps that the original Medicare plan doesn't cover.

Here are some steps that you should follow when choosing a Medicare supplemental insurance plan.

Step one:
You are going to want to shop around, meaning you are going to want to get quotes from numerous insurance brokers or websites about what they are going to charge you per month. The reason for this is that with the Medigap Plans the coverage is going to be the same no matter what insurance company you use because the plans are actually standardized. But the prices that the companies charge can vary greatly because the insurance companies are allowed to charge what they wish, meaning the price unlike the benefits are not standardized.

Step two:
Check with your state insurance department or your state's department of aging to see if they provide price comparisons for the various policies that are available. Some states will even have the comparisons available for you to use on their websites. But the state department can also refer you to SHIP, which is a federally funded program that lets Medicare recipients know their options about health care and Medigap insurance.

Step three:
No matter what anybody tells you never buy more than one Medigap policy. The reason for this is that you would be wasting your money because you would be paying for duplicate insurance coverage.

Step four:
If you are going to be switching plans make sure that you won't run into any issues with the new plan covering pre-existing conditions. But also if you are switching policies make sure that you do not cancel your old policy until you have received the new policy papers and the policy start date.

Step five:
Make sure that you actually need the extra coverage. Many times people whose income is low enough will qualify for other public programs to help provide extra insurance, such as Medicaid, this will actually cover the gaps left by the original Medicare plan. But you also need to check into getting coverage from your former employer because many times retirees are eligible for group health benefits, which will supplement the Medicare coverage. You also want to ensure that your spouse is entitled to the same benefits that you receive.

Step six:
Make sure that you compare the various Medigap plans, which can be found below, to pick the plan that has the best coverage for you. The plans vary in what they are going to cover so you are going to need to check your current coverage to see what gaps you need to fill in with extra coverage. Not to mention that you are going to want to decide which plan meets your needs before you go and meet with an agent so that they don't talk you into a more expensive plan.

Here is a closer look at the benefits available under each Medigap plan so you can make a decision on which plan you want to choose:

Medigap Plan A Basic Benefits:

1. Coverage for the Part A co-insurance amount for days 61 through 90 of a hospital stay in each Medicare benefit period
2. Coverage for the Part A co-insurance amount for days 91 through 150 of a hospital stay for each of Medicare's 60 lifetime reserve days, which can only be used once
3. After all Medicare hospital benefits are exhausted, coverage for 100% of the Medicare Part A eligible hospital expenses. Coverage is limited to a maximum of 365 days of additional inpatient hospital care during your lifetime. But you might be responsible for payment when Medigap hospital benefits are exhausted.
4. Coverage for the co-insurance amount for Part B services, generally 20% of Medicare approved amount, after annual deductible is met
5. Coverage under Medicare Parts A and B for the reasonable cost of the first three pints of blood or equivalent quantities of packed red blood cells per calendar year unless this blood is replaced.

Medigap Plan B:

• All basic benefits of Plan A
• Coverage for the Medicare Part A inpatient hospital deductible

Medigap Plan C:

• All the basic benefits of Plan A
• Coverage for the Medicare Part A inpatient hospital deductible
• Coverage for the skilled nursing facility co-insurance amount
• Coverage for the Medicare Part B deductible
• 80% coverage for medically necessary emergency care in a foreign country, after a certain deductible is met

Medigap Plan D:

• All the basic benefits of Plan A
• Coverage for the Medicare Part A inpatient hospital deductible
• Coverage for the skilled nursing facility co-insurance amount
• 80% coverage for medically necessary emergency care in a foreign country, after a certain deductible is met
• Coverage for at home recovery. This benefit pays an amount per year for short term at home assistance with activities of daily living for people who are recovering from an illness, injury, or surgery.

Medigap Plan E:

• All the basic benefits of Plan A
• Coverage for the Medicare Part A inpatient hospital deductible
• Coverage for the skilled nursing facility co-insurance amount
• 80% coverage for medically necessary emergency care in a foreign country, after a certain deductible is met
• Coverage for preventive medical care. This benefit pays an amount per year for things like a physical exam, serum cholesterol screening, hearing test, diabetes screening, and thyroid function test

Medigap Plan F:

• All the basic benefits of Plan A
• Coverage for the Medicare Part A inpatient hospital deductible
• Coverage for the skilled nursing facility co-insurance amount
• Coverage for the Medicare Part B deductible
• 80% coverage for medically necessary emergency care in a foreign country, after a certain deductible is met
• Coverage for 100% of Medicare Part B excess charges

Medigap Plan G:

• All the basic benefits of Plan A
• Coverage for the Medicare Part A inpatient hospital deductible
• Coverage for the skilled nursing facility co-insurance amount
• 80% coverage for medically necessary emergency care in a foreign country, after a certain deductible is met
• Coverage for at home recovery. This benefit pays an amount per year for short term at home assistance with activities of daily living for people who are recovering from an illness, injury, or surgery.
• Coverage for 80% of Medicare Part B excess charges

Medigap Plan H:

• All the basic benefits of Plan A
• Coverage for the Medicare Part A inpatient hospital deductible
• Coverage for the skilled nursing facility co-insurance amount
• 80% coverage for medically necessary emergency care in a foreign country, after a certain deductible is met

•     Coverage for 50% of the cost of prescription drugs up to a maximum per year after you meet your deductible per year. This is your basic prescription drug benefit.

Medigap Plan I:

•     All the basic benefits of Plan A
•     Coverage for the Medicare Part A inpatient hospital deductible
•     Coverage for the skilled nursing facility co-insurance amount
•     80% coverage for medically necessary emergency care in a foreign country, after a certain deductible is met
•     Coverage for at home recovery. This benefit pays an amount per year for short term at home assistance with activities of daily living for people who are recovering from an illness, injury, or surgery.
•     Coverage for 100% of Medicare Part B excess charges
•     Coverage for 50% of the cost of prescription drugs up to a maximum per year after you meet your deductible per year. This is your basic prescription drug benefit.

Medigap Plan J:

•     All the basic benefits of Plan A
•     Coverage for the Medicare Part A inpatient hospital deductible
•     Coverage for the skilled nursing facility co-insurance amount
•     Coverage for the Medicare Part B deductible
•     80% coverage for medically necessary emergency care in a foreign country, after a certain deductible is met
•     Coverage for at home recovery. This benefit pays an amount per year for short term at home assistance with activities of daily living for people who are recovering from an illness, injury, or surgery.
•     Coverage for 100% of Medicare Part B excess charges
•     Coverage for preventive medical care. This benefit pays an amount per year for things like a physical exam, serum cholesterol screening, hearing test, diabetes screening, and thyroid function test
•     Coverage for 50% of the cost of prescription drugs up to a maximum per year after you meet your deductible per year. This is your basic prescription drug benefit.