Benefits will be coordinated when individuals are covered under what situation?

Benefits coordination occurs when individuals are covered under two or more health plans. This practice is designed to ensure that the total benefits an individual receives do not exceed the actual costs incurred for healthcare services, also known as avoiding overinsurance. When multiple health plans are involved, coordination of benefits is necessary to determine which plan pays first (primary) and which pays second (secondary). This process helps to streamline claims and ensures that all expenses are appropriately managed, allowing individuals to maximize their coverage while preventing duplicate payments for the same service.

In contrast, situations involving only one health plan do not require coordination as there is no overlap in coverage. Similarly, if a person has only employer-sponsored plans or only government health programs, coordination does not apply as there is no interaction between multiple payers. Coordination of benefits specifically comes into play when an individual has coverage from different sources, making option B the correct choice.