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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.
This is called the hospital insurance deductible. The deductible is increased every January 1. You can get all the details in our article on Part A medical coverage. For gaps in what Medicare Part A covers, including deductibles and co-insurance amounts, see Nolo's article Medigap: Covering the Gaps in Medicare.