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How to open an Fortis Health Savings Account

by Tony Novak, MBA, MT, OnlineAdviser at Freedom Benefits revised 11/28/11

Editor' s Note: This article was first revised 3/29/04. "Fortis Health" has changed it name to "Fortis Health" and remains the highest quality HSA-qualified individual and small group insurance plan in most states. This article is written for financial advisers opening HSA accounts on behalf of clients and those individuals who wish to open a Fortis health savings account using Internet resources without a professional adviser. If you are using a paid adviser (either the OnlineAdviser^TM service or your own financial adviser) then these tasks will be handled directly by your adviser.

Fortis Health is the only provider of Health Savings Accounts for individuals and small businesses to offer both HSA-qualified insurance and free HSA account administration. While Fortis is also one of the more expensive plans and this company has a difficult application process, these obstacles are acceptable to many applicants who insist on the highest quality coverage from a market share leader. The application process can be tedious and not everyone will qualify for enrollment. Fortis intends to focus on preferred risk applicants and may decline to issue coverage for a number of health-related and other reasons.

If possible, begin this process at least 3 weeks but not more than 8 weeks before you want the coverage to start. Do not cancel other health insurance coverage until your new Fortis coverage has been issued and reviewed to your full satisfaction.

Step #1. Download insurance rate sheet and application form for your home state or order a personalized rating and enrollment package at www.freedombenefits.net. All forms are in Adobe PDF format. Take the time to read the instruction page.

If a published rate chart is not available for your state or zip code, plan rates and details will be provided by e-mail based on the information on your application. The rate sheets list "preferred rates"; not everyone will qualify at these rates.

Step #2. Complete and sign both the application forms and rate sheet. Note that the signature lines, the payment section and the "desired starting date" are critical to start the application. Most applicants pay the premium monthly preauthorized draft as indicated on the application form. The other payment option is prepaid quarterly check.

Step #3. Fax all of the forms to the toll-free fax number listed in the image below. (obsolete)

Step #4 If paying for the insurance by check on a quarterly basis rather than automated monthly bank drafts, mail the initial premium check to MedSave.com. P. O. Box 102 Narberth PA 19072. (obsolete) Make the insurance premium check payable to "Fortis".

Step #5 Expect a confirmation by e-mail by the end of the next business day. If this is not received, your application might not be received. In this case call (610) 636-6786 (obsolete) to report the problem. A follow-up letter by regular mail will confirm all of the coverage options that you selected and those that you omitted.

Step #6 After the application confirmation is received, call (800) 596-0049 for a health history interview. Give your social security number and be prepared to give details of your medical treatment history (and the health history of you dependents if applicable).

Step #7 Status of the application can be checked by calling (888) 575-641. Any additional requirements of case-specific forms are sent by e-mail. When the policy is delivered by mail (usually in about 3 weeks), you will have at least 10 days to review the plan and cancel coverage for a full refund. Otherwise, the policy remains in force until you cancel or lapse the coverage.

Step #8 After the insurance is issued, if you are opening a Heath Savings Account with an administrator other than Fortis, download and complete an application form at www.healthsavingsaccount.hsa.com/account.htm . Mail the forms with the initial deposit check according to the instructions printed on the application. See the chart at that Web site that summarizes the differences in features and costs between HSA administrators. There is no additional fee for the basic Fortis HSA account. Other firms' HSA accounts with optional services may cost extra as indicated on the application forms. Investment and brokerage account options will be offered directly by the properly licensed investment branch of the HSA administrator after a basic account is opened. HSA plan administrators do not advertise or promote investment accounts due to legal restrictions on investment advertising by non-investment firms.

For questions, call Tony Novak at (610) 636-6786. (obsolete) Free enrollment support is provided through OnlineAdviser service.

Avoid other common mistakes by following these tips:

Consider pre-existing medical conditions. These plans are meant for preferred risk individuals without significant medical issues. Minor pre-existing medical conditions are usually excluded from coverage. These plans are not available to individuals with significant medical history or during a pregnancy. These plans are not cost-effective for covering normal maternity expenses.
Be realistic about insurance pricing. These plans average about 30% less than full coverage HMOs but still cost substantially more than mini-med insurance plans. If the price of health insurance is the primary concern, HSAs plans are not likely the best option. See Freedom Benefits for a listing of lower priced health insurance plans.
Pay by monthly bank draft rather than check. If you must pay by check, the full quarterly premium must be received before the application is reviewed. Only personal checks are permitted (no business checks).
Do not open the HSA account until after the insurance is approved. Details and deposit slips are provided with the delivery of the insurance policy.

Tony Novak is an accredited member of the Better Business Bureau.

Status: obsolete with regard to Fortis but retained for the generic consumer tips at the end of the article

We no longer use Fortis as custodian for HSA accounts. See healthsavingsaccount-HSA.com for current information.

This article is available for republication in its entirety without charge after obtaining the express written permission of the author.

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How to open an Fortis Health Savings Account

Avoid other common mistakes by following these tips:

Status: obsolete with regard to Fortis but retained for the generic consumer tips at the end of the article

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