Birthday Rule

What Does Birthday Rule Mean?

The birthday rule states that when a dependent child is covered by the health insurance policies of both parents, the primary policy for the child will be the one held by the parent whose birthday falls closest to the beginning of the year.

Insuranceopedia Explains Birthday Rule

Under the birthday rule, the parent’s age doesn’t matter; only the parent whose birthday is closest to the beginning of the year determines the primary policy for the dependent child.

The rule was established to provide a standard for determining which insurer should be the primary for dependent children. While it may seem somewhat arbitrary, the birthday rule helps prevent delays in claim settlements by avoiding disputes between insurance companies over who should pay.