HLS 25RS-433 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 427
BY REPRESENTATIVES BAMBURG, BERAULT, CARVER, CHENEVERT,
DOMANGUE, EGAN, GAL LE, GLORIOSO, HENRY, AND WYBLE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CIVIL/PROCEDURE: Provides for a reversionary trust
1 AN ACT
2To enact R.S. 13:4212, relative to civil damages; to provide for the payment of certain
3 expenses in a personal injury claim; to provide for the payment of medical expenses;
4 to require a claimant to present invoices for outstanding medical and related
5 expenses; to provide for the payment of future medical and related expenses; to
6 require the use of a reversionary trust in certain circumstances; and to provide for
7 related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 13:4212 is hereby enacted to read as follows:
10 ยง4212. Reversionary trust
11 A. "Reversionary medical trust" means a trust established for the exclusive
12 benefit of the claimant to pay the medical care and related benefits as they accrue,
13 including without limitation reasonable and necessary amounts for all diagnosis,
14 care, mitigation, or treatment of any disease or condition from which the injured
15 person suffers as a result of the injuries, and the sequelae thereof, sustained by the
16 claimant on the date the injury was sustained.
17 B. If a party is held liable for damages in a delictual action and the court
18 determines that the claimant is in need of future medical and related benefits, an
19 insurer liable for damages may place its amount due for future medical care and
20 related benefits in a reversionary medical trust.
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HB NO. 427
1 C. The reversionary medical trust shall be established by the insurer,
2 administered by a trustee appointed by the insurer, and administered for the benefit
3 of claimants entitled to medical care and related benefits that may be incurred
4 subsequent to judgment. The trustee shall be paid by the insurer for administering
5 the reversionary medical trust. Amounts due for medical care and related benefits
6 shall be paid from the reversionary medical trust directly to the provider as the
7 amounts are incurred. In submitting requests for payment, the claimant shall submit
8 the original invoices.
9 D. The trustee shall review all invoices received for future medical care and
10 related benefits, prepare vouchers or warrants, and evaluate and settle claims related
11 to the payment of future medical care and related benefits. The trustee shall have the
12 same fiduciary duties as imposed upon a trustee by the Louisiana Trust Code, R.S.
13 9:1721 et seq.
14 E. Upon the death of the claimant or upon the termination of the trust as
15 provided in the trust instrument, any funds remaining in the reversionary medical
16 trust shall revert to the party that established the trust.
17 F. No provision of this Section shall limit the rights of claimants to contract
18 with respect to attorney fees and costs.
19 Section 2. The provisions of this Act shall have prospective application only and
20shall not apply to causes of action filed prior to the effective date of this Act.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 427 Original 2025 Regular Session Bamburg
Abstract: Establishes a reversionary trust.
Proposed law defines "reversionary medical trust".
Proposed law requires the use of a reversionary medical trust for the payment of future
medical and related expenses.
Proposed law requires that the liable party establish the trust and the claimant shall submit
original invoices, which the trustee shall review for payment. The trustee shall also prepare
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 25RS-433 ORIGINAL
HB NO. 427
vouchers or warrants and evaluate and settle claims related to the payment of future medical
care and related benefits. The trustee shall have the same fiduciary duties as imposed upon
a trustee by the La. Trust Code.
Proposed law provides that upon the death of the claimant or upon the termination of the
trust as provided in the trust instrument, any funds remaining in the reversionary trust shall
revert to the party that established the trust.
Proposed law does not limit a claimant's ability to contract with respect to attorney fees and
costs.
(Adds R.S. 13:4212)
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.