What rule applies when both parents carry family coverage for a child?

The Birthday Rule applies in situations where both parents have family coverage for their child. This rule determines which parent's insurance is considered primary for coverage purposes based on which parent’s birthday falls first in the calendar year. Specifically, the insurance plan of the parent whose birthday comes earlier in the year is designated as the primary coverage for the child.

This rule is established to streamline the process of determining primary versus secondary insurance, ensuring that children can access medical care without unnecessary complications in insurance claims. It promotes fairness and consistency in determining which parent’s insurance will be billed first.

Other options describe situations that do not align with standard practices in insurance coverage and coordination of benefits. Therefore, the Birthday Rule is recognized as the appropriate guideline in this context.