John and Jane Smith were just divorced.Jane was awarded custody of the couple's child,Maggie.John was born on March 18,1979.Jane was born on January 24,1980.John and Jane are each covered under generous employee benefit plans at work.The plans also cover the spouse and children of the worker.Assuming there is no court decree specifying responsibility for Maggie's health care expenses,which of the following is true regarding coverage of Maggie's health care expenses?

Question

Quizplus · Accepted Answer

In the absence of a court decree specifying responsibility for Maggie's health care expenses, the "birthday rule" applies. According to this rule, the plan covering the parent whose birthday comes first in the calendar year is designated as the primary plan, and the other plan is secondary or excess. Since Jane's birthday comes before John's, her plan will be considered primary for Maggie's health care expenses, and John's plan will be excess. Therefore, the correct answer is C.

John and Jane Smith Were Just Divorced