25-13-603. Medical care, health, or medical savings account -- bankruptcy -- exemption from attachment or garnishment. (1) An individual's medical care savings account under Title 15, chapter 61, a health savings account under 26 U.S.C. 223, or a medical savings account under 26 U.S.C. 220:

(a) is exempt from creditor processes;

(b) is not liable to attachment, garnishment, or similar legal processes; and

(c) may not be seized, taken, appropriated, or applied by a legal or equitable process or by operation of law to pay a debt or liability of the individual or of a beneficiary on the account as provided in 72-6-223. This includes but is not limited to exemption from judgments under Title 25, chapter 13, and bankruptcy proceedings as provided under 31-2-106.

(2) This section applies to an individual's rights to hold or receive the assets of, income from, or funds paid into or out of a medical care savings account, health savings account, or medical savings account.

(3) This section does not apply to the extent that the bankruptcy, creditor, and other processes in subsection (1) relate to recovery of eligible medical expenses incurred by an individual from the individual's medical care savings account, health savings account, or medical savings account.