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The truth is that both of them are quite different from each other. A Medicare Supplemental Insurance policy is a private health insurance policy especially intended to fill in the gaps where Original Medicare falls short. Herein, the Medicare is the primary or the first payer. A Medigap insurance policy pays for the costs that are not covered in Medicare because of the limits or the insurance deductible amounts under the Medicare plan.
Under the Medicare law, as enacted in 1965, Medicare was the primary payer for services except those covered by workers' compensation (WC). In 1980, Congress enacted the first of a series of provisions that made Medicare the secondary payer to certain additional primary plans.