The trustee or custodian shall utilize the funds held in a health savings account solely for the purpose of:
Paying the qualified medical expenses of the eligible individual or his or her dependents;
Purchasing a health coverage policy certificate, or contract, for an eligible individual who is receiving unemployment compensation, is exercising continuation privileges under federal law or is purchasing a long-term care insurance contract; or
Paying for health insurance other than a Medicare supplemental policy for those who are Medicare eligible. Funds held in a health savings account shall not be used to cover expenses of the eligible individual or his or her dependents that are otherwise covered, including, but not limited to, medical expense covered pursuant to an automobile insurance policy, workers' compensation insurance policy or self-insured plan or another employer-funded health coverage policy, certificate or contract.