The Louisa Carman Medical Debt Relief Act, designated as P.L.2024, c.48, introduces significant reforms to the management and collection of medical debt in New Jersey. Key provisions include a prohibition on medical creditors and debt collectors from reporting a patient's medical debt to consumer reporting agencies for services rendered after the act's effective date. Additionally, it establishes a 120-day waiting period before any collection actions can commence, requiring creditors to offer a reasonable payment plan to patients. The act also mandates that any communication regarding collection actions must inform patients that their debt has not been reported to a consumer agency, and it restricts the sale of medical debt unless specific conditions are met.

Furthermore, the act limits the interest rates on medical debt to a maximum of three percent per annum and prohibits wage garnishment for patients earning less than 600 percent of the federal poverty level. It also protects patients undergoing insurance appeals from collection actions and requires that any medical debt reported in violation of the act be voided. The enforcement of these provisions is designated to the Attorney General, who has the authority to restore any unlawfully acquired moneys or properties. The act's provisions are severable, ensuring that if any part is deemed unenforceable, the remaining sections will still be valid.