House Bill No. 427 establishes a "reversionary medical trust" to facilitate the payment of future medical and related expenses for claimants in personal injury cases. The bill mandates that if a party is found liable for damages and the court determines that the claimant requires future medical benefits, the insurer must establish a reversionary medical trust. This trust will be administered by a trustee appointed by the insurer, who will be responsible for reviewing invoices submitted by the claimant and authorizing payments directly to medical providers as expenses are incurred. The trustee is required to provide an annual accounting of all payments made from the trust.

Additionally, the bill stipulates that any remaining funds in the reversionary medical trust upon the claimant's death or the trust's termination will revert to the party that established the trust. Importantly, the legislation does not restrict the claimant's rights to negotiate attorney fees and costs. The provisions of this Act will only apply prospectively, meaning they will not affect any causes of action filed before the effective date of the law.