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HB 1089

CIVIL/DAMAGES: Creates CARE Accounts for certain damages arising from delictual actions

2026 Regular Session Introduced by Dennis Bamburg and 11 co-sponsors

HB 1089 creates CARE Accounts: future medical award funds held for the claimant but owned by the debtor, usable only for qualifying medical expenses, with defined payment options.

Read second time by title and referred to the Committee on Judiciary A.
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Bill Summary · HB 1089

Summary of HB 1089 (2026) – Louisiana CARE Accounts

Purpose and intent

  • Establishes a new mechanism called CARE Accounts (Compensation Allocated for Reimbursable Expenses Accounts) for handling portions of delictual damages awards that are designated for future medical expenses.
  • The core idea is to safeguard funds awarded specifically for future medical needs and restrict their use to qualifying medical expenses.

Key provisions

Short title

  • The measure is known as the CARE Account Act.

Definitions

  • CARE Account: A money-market deposit account, ordered by the court, funded from a delictual damages award designated for future medical payments.
  • Qualifying medical expenses: Any product or service listed in the current CPT (Current Procedural Terminology) and HCPCS (Healthcare Common Procedure Coding System) codes maintained by the U.S. Centers for Medicare & Medicaid Services.

Establishment and use of CARE Accounts

  • In delictual actions (civil tort claims) where special damages include future medical expenses, the court must order the portion of the award designated for future medical expenses to be deposited into a CARE Account, unless the parties agree otherwise and the court approves.
  • The CARE Account is:
    • Owned by the judgment debtor (the defendant) but held for the benefit of the judgment creditor for the life of the judgment debtor.
    • Established and maintained at a financial institution as a money-market deposit account.
  • Use of funds:
    • Funds in the CARE Account may only be used to purchase qualifying medical expenses.
    • The financial institution that maintains the CARE Account is not required to ensure that transactions are always for qualifying medical expenses, nor is it liable for non-qualifying purchases.
    • The judgment debtor may contract with a third-party administrator to help ensure transactions are limited to qualifying medical expenses.
  • If a transaction to pay for a qualifying medical expense is declined:
    • The judgment creditor can either: 1) Pay the expense from other funds and obtain reimbursement from the CARE Account, or 2) Submit an itemized invoice to the financial institution to obtain an alternative payment method using CARE Account funds.
  • Death of the judgment creditor:
    • Any funds remaining in the CARE Account revert to the judgment debtor.

Applicability and timelines

  • Prospective application only: The Act does not apply to causes of action filed prior to the Act’s effective date.
  • Effective date: January 1, 2027.
  • Adds new R.S. 6:1431–1433 to create and govern CARE Accounts.

Scope and impact

  • Affects civil/damages procedures in tort cases where future medical expenses are awarded.
  • Creates a structured, restricted mechanism intended to ensure funds designated for future medical care are used specifically for that purpose.
  • Shifts some risk and administrative responsibility to financial institutions and potentially third-party administrators.
  • Preserves flexibility for parties through court approval or mutual agreement to deviate from default CARE Account treatment.

Summary in plain language

HB 1089 would create CARE Accounts—a special money-market account used to hold funds from tort awards that are meant for future medical care. The court would place the future medical portion of the damages award into this account, which would be owned by the judgment debtor but held for the benefit of the judgment creditor for the life of the judgment. Funds could only be used for qualifying medical expenses, as defined by current Medicare/Medicaid coding systems. If a payment is declined, there are defined recourse options to reimburse or pay the expense. Upon the judgment debtor’s death, any remaining funds return to them. The bill applies only to actions filed after January 1, 2027.

Compiled from official sources — confirm details with the bill’s official record.

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