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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.
1 You generally pay a set amount for your health care (deductible) before Medicare pays its share. Then, Medicare pays its share, and you pay your share (coinsurance / copayment) for covered services and supplies. There's no yearly limit for what you pay out-of-pocket.  You usually pay a monthly premium for Part B.