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, as well as a ban on reporting any medical debt under $500. Additionally, the act mandates that collection actions cannot commence until 120 days after the first bill is sent, and only after a reasonable payment plan has been offered to the patient. The act also stipulates that any communication regarding collection must inform the patient that the debt has not been reported to a consumer agency.

Furthermore, the act limits the interest rates on medical debt to a maximum of three percent per annum and restricts wage garnishment for patients earning less than 600 percent of the federal poverty level. It also establishes protections for patients undergoing internal reviews or appeals related to their health insurance, preventing creditors from pursuing collection actions during this period. Violations of the act can result in penalties, and any medical debt reported in violation of its provisions will be considered void. The enforcement of these regulations is designated to the Office of the Attorney General, ensuring that patients are protected from aggressive collection practices.