About Kardel Insurance
What are the costs for using Kardel Insurance Services, Inc?
Nothing! All services offered by Kardel Insurance Services are provided at no extra cost to you. If you purchase insurance through Kardel Insurance Services, Inc all you pay is the regular monthly premium to the insurance company you choose. You never pay anything to us for our services. Our fees are paid by the insurance companies in the form of commissions, which are built into the premium amount.
Can’t I get health insurance cheaper if I go to one of those big online providers, or even directly to the insurer like Anthem?
Health insurance premiums are filed with and regulated by California Department of Insurance or Department of Managed Health Care. Whether you buy from Kardel Insurance Services, Inc, an online quote engine, or directly from the health insurance company, you’ll pay the same monthly premium for the same plan. This means that you can enjoy the local service and expertise of a professional in your community with the convenience of shopping and purchasing online or meeting in our office. And rest assured that you are receiving the best possible price![/vc_column_text][vc_column_text]
Health Savings Accounts
What are Health Savings Accounts?
Health Savings Accounts are a tax-favored savings plan created by the 2003 Medicare Act. The accounts work similarly to an individual retirement account: eligible participants can deposit money in an HSA, and deduct the amount of the deposits from taxable income.
Does this account replace the Archer Medical Savings Account (MSA)?
Yes. For tax years after 12/31/04, the Archer MSA sunsets and the HSA replaces it. Rollovers from Archer MSA’s to HSA’s are permitted.
Is there an enrollment cap or restriction on who can have a Health Savings Account?
No. There are not enrollment caps as with the MSA. They are available to anyone covered by a qualified high deductible health plan.
Who is eligible?
To receive a tax deduction for contributions to the account, an individual must be covered under a qualified high-deductible health plan. The person must also be below Medicare eligibility age (65), and not covered under any other health plan which duplicates any benefits in the qualified high-deductible plan. Exception: Individuals may maintain coverage for accidents, disability, dental care, vision care and long term care.
Who owns the account?
Individual or employee.
Who funds the account?
Taxpayer and/or employer. If the employer contributes to the employee’s account, the contribution must be the same for all employees, and the employer receives a tax deduction as a normal business expense.
How is the account funded?
Money is deposited directly into the account. Contributions must be made directly in cash or through 125 Cafeteria plans.
Is it a personal account?
Does interest accrue?
Interest can be accrued tax free in qualified HSA’s.
What is the tax treatment?
Account distributions are tax free for qualified medical expenses as defined by 213(d) of the IRC. Tax-free distributions to pay premiums for long-term care insurance, COBRA continuation, and health insurance while unemployed are allowed. Qualified expenses generally include prescription drugs, qualified long term care services, Medicare expenses (but not Medigap), and retiree health expenses for individuals age 65 and older. Please see IRS Publication 969 for details.
Can funds be used for non-medical expenses?
Non-medical distributions are included in gross income, and therefore taxed, as well as subject to 10% penalty. Only exception allowed is non-medical distributions for those individuals age 65 and over or who are disabled or deceased. Those distributions are included as taxable income but are not subject to the 10% penalty.
Is there a tax on excess contributions?
Group Health Insurance
Why should I provide group insurance for my employees?
Employees place a high value health insurance benefits. Human Resources surveys consistently show workers value health insurance coverage second only to monetary compensation. Offering employee benefits makes it easier to hire and retain the best talent for your company.
As a business owner, you may not have health insurance coverage yourself. Perhaps you’ve considered shopping for an individual health insurance plan for yourself and your family, but did you know that by obtaining insurance through a company, you may get better rates than through the individual market? Additionally you will receive access to the best network of providers. Many of our clients are frustrated with the limited networks offered through Covered California plans and directly through insurers.
Finally, there are various tax incentives available to you and your employees when you participate in a group health insurance plan. For example, businesses can generally deduct 100% of the premiums they pay on qualifying group health plans and, by offering group health insurance as part of a total compensation package, you may be able to reduce payroll taxes. Plus, your employees can pay their portion of the monthly insurance premium with pre-tax dollars. Make sure that you take these incentives into consideration when determining the affordability of a health insurance plan for you and your employees. And check with your accountant for details. Kardel Insurance Services, Inc does not provide tax information.
What’s the difference between an HMO, PPO, and POS?
Those aren’t Scrabble words!
Preferred Provider Organizations (PPO)
PPO plans offer the most flexibility in doctors and hospitals (providers). PPO plans provide coverage (at different levels) for services from both Participating and Non-Participating Providers. Using Participating Providers will yield the greatest discounts. In today’s market, there are various PPO plans depending on the insurance company and type of product (group vs individual). Make sure you look at your specific plan to check providers. And always confirm a provider is in network at time of service.
Health Maintenance Organization (HMO)
HMO Plans cover more of the cost of health care than any other medical plan type. HMO Plans provide coverage only for services received from doctors and hospitals within the HMO Network. You choose a specific health care group and physician within the network to coordinate all of your health care needs.
Point of Service Plan (POS)
This is essentially a hybrid of the HMO and PPO. POS plans generally provide a larger network of providers than an HMO and you don’t need to go to a PCP to initiate coverage. However, there are no benefits outside the POS network.[/vc_column_text][/vc_column][/vc_row]