Bill > HB427

This bill establishes a new legal mechanism called a "reversionary medical trust" for handling future medical expenses in personal injury claims. Under this law, when a defendant is found liable for damages and the court determines the plaintiff needs ongoing medical care, the liable insurer can create a specialized trust to manage and pay for the plaintiff's future medical expenses. The trust must be administered by a trustee appointed by the insurer, who will review medical invoices and directly pay healthcare providers as expenses are incurred. The plaintiff must submit original invoices for payment, and the trustee is required to provide an annual accounting of all medical payments. Importantly, if the plaintiff dies or the trust is terminated, any remaining funds will return to the insurer that established the trust. The law emphasizes that the trustee must follow fiduciary duties outlined in the Louisiana Trust Code and does not limit the plaintiff's rights to negotiate attorney fees and costs. This legislation will only apply to causes of action filed after its effective date, meaning it does not retroactively affect existing legal cases.

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https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB427&sbi=y