1. A. The trustee or custodian shall utilize the funds held in a health savings account solely for the following purposes:

   1. 1. To pay the qualified medical expenses of the eligible individual or their dependents; or

   2. 2. To purchase a health coverage policy certificate, or contract, if the eligible individual:

      1. a. is receiving unemployment compensation,
      2. b. is exercising continuation privileges under federal law, or
      3. c. is purchasing a long-term care insurance contract; or
   3. 3. To pay for health insurance other than a Medicare supplemental policy for those who are Medicare eligible.

2. B. Funds held in a health savings account shall not be used to cover expenses of the eligible individual or their dependents that are otherwise covered, including, but not limited to, medical expenses covered by the following:

   1. 1. An automobile insurance policy;
   2. 2. Workers' compensation insurance policy or self-insured plan; or
   3. 3. Another employer-funded health coverage policy, certificate or contract.

Laws 2005, HB 1848, c. 306, § 4, eff. November 1, 2005.