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6/3/2025
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Senate OKs Lauria’s bill creating fund to assist children with catastrophic illnesses
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STATE HOUSE – The Senate today approved legislation sponsored by Sen. Pamela J. Lauria to establish a special fund to provide financial assistance to families with children stricken by a catastrophic illness for medical expenses not covered by state or federal programs or insurance. The legislation now goes to the House of Representatives.
“Medical bills from major health events are one of the most common underlying causes for personal bankruptcy in the United States. When families with kids face astronomic expenses from a serious illness, those costs can have a devastating effect on the safety and future of that child and their whole family, compounding their parents’ struggles and worries,” said Senator Lauria (D-Dist. 32, Barrington, Bristol, East Providence). “This fund could help protect families from the threat of financial ruin when they are already experiencing extraordinarily difficulties, so they can focus on what’s most important: their child’s health.”
Under the bill (2025-S 0050), the fund would be available to Rhode Island residents 21 years old or younger with a catastrophic illness or condition. The bill defines catastrophic illnesses or conditions as those with medical expenses that are not covered through a government program or private insurance and that exceed 10 percent of the first $100,000 of annual family income, plus 15 percent of income over $100,000.
The amount of reimbursement for the medical expenses would be established through a sliding fee scale based on a family’s ability to pay, taking into account family size, income, and assets. All medical records for any child that apply for the fund would be kept confidential.
The legislation also establishes a nine-member commission to oversee the fund consisting of department directors, such as the Director of the Department of Human Services, health care professionals and members of the public. The General Treasurer would be the custodian of the fund and responsible for disbursements of the fund according to the direction of the commission.
Monies for the fund would be generated through a $1.50 annual surcharge per employee for all employers who are subject to employment security laws. The surcharge will be collected by the director of the Department of Labor and Training and transferred to the control of the General Treasurer to deposit into the fund.
The commission shall submit an annual report to the governor, the Senate, and the House of Representatives regarding the number of participants, average expenditures per participant, and other data relative to the ongoing administration of the fund.
For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903
(401) 222-1923
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