The Louisa Carman Medical Debt Relief Act aims to provide significant protections for patients dealing with 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 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 and an internal review or appeal regarding the debt is pending, the creditor or collector must instruct the agency to delete the reported information. Any medical debt reported in violation of this act will be considered void, and violations will be classified as unlawful practices under the consumer fraud act. The provisions of the act are designed to protect patients from aggressive collection practices and ensure that their medical debts are handled fairly.