Which insurance coverage is considered primary when there are multiple dependents involved?

Employment-based coverage is considered primary when multiple dependents are involved due to the structured nature of employer-provided health insurance plans. These plans typically have defined benefits and obligations that prioritize coverage since they are designed for employees and their families as a fundamental part of workplace benefits.

In circumstances where dependents are covered under more than one insurance policy, employment-based coverage often holds precedence because it is legally mandated to offer adequate protection, making it a reliable source for dependents' healthcare expenses.

The other options do not define primary coverage as effectively. Personal coverage from a dependent may lack comprehensive benefits, while using the parent with the later birthday as the primary coverage can be arbitrary and doesn’t align with standard practices in insurance prioritization. Choosing the least expensive coverage might not guarantee adequate health care, as it can lead to gaps in coverage or lack of necessary benefits. Hence, employment-based coverage is recognized as the primary source due to its structured and legally mandated approach to providing health benefits.