House Bill No. [insert bill number] proposes the establishment of CARE Accounts, which are designated for the management of funds awarded for future medical expenses resulting from delictual actions. The bill enacts Chapter 25 of Title 6 of the Louisiana Revised Statutes, introducing definitions for "CARE Account" and "qualifying medical expenses." A CARE Account is defined as a money market account where funds from a special damages award are deposited specifically for future medical payments. The bill outlines that these accounts are to be established in the name of the judgment debtor for the benefit of the judgment creditor, and any remaining funds in the account upon the death of the judgment creditor will revert to the judgment debtor.

Additionally, the bill stipulates that funds in a CARE Account can only be used for qualifying medical expenses, which are defined according to the latest coding systems maintained by the Centers for Medicare and Medicaid Services. It also provides mechanisms for the judgment creditor to access funds for qualifying medical expenses if a transaction is declined. The provisions of this Act will apply prospectively, meaning they will not affect causes of action filed before its effective date of January 1, 2027.