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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.
Medicare supplement insurance pays: Part A coinsurance, and most plans pay the hospital deductible. Some of the out-of-pocket costs not paid by Part B. Some plans also cover the Part B deductible. Cost of blood transfusions (first 3 pints)