The Louisa Carman Medical Debt Relief Act aims to provide significant protections for patients regarding medical debt. Under this bill, consumer reporting agencies are prohibited from creating reports that include a patient's paid medical debt or any medical debt under $500, regardless of when it was incurred. Additionally, medical creditors and debt collectors are barred from reporting such debts to consumer reporting agencies. The bill also establishes a waiting period of 180 days before any collection actions can be initiated after the first bill for a medical debt is sent, and requires that patients receive a notice at least 30 days prior to any collection actions being taken.

Furthermore, the bill stipulates that if a medical debt is reported to a consumer reporting agency in violation of its provisions, that portion of the debt will be considered void. It also outlines that it is an unlawful practice for medical creditors or debt collectors to engage in collection actions that contravene the bill's regulations. Overall, the Louisa Carman Medical Debt Relief Act seeks to alleviate the burden of medical debt on patients and ensure fair treatment in the collection process.