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 be initiated, 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 creditors to delete any reported debts if they learn that the debt has been paid or is under review. Violations of the act can result in civil penalties, and the Attorney General is granted exclusive authority to enforce these provisions. The act's provisions are designed to provide greater protections for patients facing medical debt, ensuring they have fair opportunities to manage their financial obligations.