HB 1089 Louisiana House · 2026 Regular Session

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

This bill establishes a new system called CARE Accounts to manage future medical payments awarded in personal injury cases. When a court orders compensation for future medical expenses, those funds must be placed in a special money market account owned by the person who caused the injury but controlled for the injured person's benefit. The account can only be used to pay for medically necessary treatments and services, though the bank does not verify each transaction. Any money left in the account after the injured person dies returns to the person who caused the injury. The law will not apply to cases filed before it takes effect on January 1, 2027.
Bill status passed 3 of 5 stages cleared
Introduction
Mar 2026
Committee Review
Apr 2026
House Passage
May 2026
Senate Passage
Governor
Introduced Mar 31, 2026 Last action May 7, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

HB1089 Reengrossed HB1089 Engrossed · 8 edits · May 5, 2026
MODERATE
The bill was renumbered from 'Reengrossed' to 'Engrossed' and shortened from five pages to four, indicating a consolidation of text. The most significant substantive change is the removal of specific legal exemptions that previously prevented CARE Accounts from being used in intentional tort cases, medical malpractice suits, sexual assault cases, and certain government-funded actions. This expands the scope of the program to cover a broader range of legal disputes.
Scope change
The bill's scope was expanded by removing exemptions for intentional torts, medical malpractice, sexual assault, and specific government-funded actions, allowing CARE Accounts to be established in these previously excluded cases.
ELIGIBILITY

Removed exemptions that barred the use of CARE Accounts in intentional tort, medical malpractice, sexual assault, and specific government-funded actions.

DEFINITION

Updated the definition of 'Qualifying medical expenses' to include products and services listed in standard medical coding systems (CPT and HCPCS) and travel costs related to those services.

Replaced the term 'Payor' with 'Qualifying medical expenses' in the definitions section to clarify the types of costs covered by the account.

REQUIREMENT

Changed the account ownership structure so the account is owned by the judgment debtor but held for the benefit of the judgment creditor, rather than being owned by the payor.

Added a requirement for the judgment creditor to sign an affidavit confirming they understand funds are strictly for qualifying medical expenses before deposit.

Added a new procedure allowing the judgment creditor to pay for a declined medical transaction with other funds and request reimbursement from the CARE Account.

Changed the outcome upon the death of the account holder: funds now revert to the judgment debtor instead of being split among payors.

TECHNICAL

Reduced the document length from five pages to four pages through text consolidation and formatting adjustments.

Floor votes · House May 5, 2026

How they voted

6630
Passed · 9 other
Total votes 105
May 5, 2026
D Democratic33
3 Yea 27 Nay 3
81% Nay
R Republican72
63 Yea 3 Nay 6
87% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
10
Key actions
3
Committee
4
May 5, 2026
Lower · Passed
Read third time by title, amended, roll called on final passage, yeas 67, nays 29. Finally passed, title adopted, ordered to the Senate.
lower
Apr 27, 2026
Lower · Passed
Reported with amendments (6-1-1).
lower
Apr 15, 2026
Committee
Read by title, recommitted to the Committee on Civil Law and Procedure.
lower
Apr 15, 2026
Lower · Passed
Discharged from the Committee on Commerce.
lower
Apr 1, 2026
Committee
Read by title, under the rules, referred to the Committee on Commerce.
lower
1 primary · 11 co-sponsors

Sponsors