Allowable expenditures

The trustee or custodian shall utilize the funds held in a health savings account solely for the following purposes: 1. To pay the qualified medical expenses of the eligible individual or their dependents; or 2. To purchase a health coverage policy certificate, or contract, if the eligible individual: a. is receiving unemployment compensation, b. is exercising continuation privileges under federal law, or c. is purchasing a long-term care insurance contract; or 3. To pay for health insurance other than a Medicare supplemental policy for those who are Medicare eligible. Added by Laws 2005, c. 306, § 4, eff. Nov. 1, 2005. Amended by Laws 2007, c. 269, § 3, emerg. eff. June 4, 2007.