Tennessee Code 67-10-104 – Utilization of funds by trustee or custodian
Terms Used In Tennessee Code 67-10-104
- account: means a trust or custodian established pursuant to a health savings account program exclusively to pay the qualified medical expenses of an eligible individual or the individual's dependents, but only if the written governing instrument creating the account meets the following requirements:
(A) Except in the case of a rollover contribution, no contribution shall be accepted: (i) Unless it is in cash. See Tennessee Code 67-10-102 - Contract: A legal written agreement that becomes binding when signed.
- Eligible individual: means the individual taxpayer, including employees of an employer who contributes to health savings accounts on the employees' behalf, who:
(A) Must be covered by a high deductible health plan individually or with the individual's dependent. See Tennessee Code 67-10-102 - Trustee: A person or institution holding and administering property in trust.
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 the individual’s dependents, or to purchase a health coverage policy certificate, or contract, if the eligible individual is receiving unemployment compensation, is exercising continuation privileges under federal law, is purchasing a long term care insurance contract, or to pay 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 the individual’s dependents who 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.