Alert

June 17, 2026

Louisiana Limits Interest on Medical Debt to 3%

The Louisiana Legislature recently adopted Senate Bill 414, which creates the Medical Debt Protection Act (the "MDPA"). The MDPA limits the interest rate on medical debt from medically necessary care to 3% per year. Any contract imposing a higher rate is void. The MDPA, which took effect on June 9, 2026, when signed by the governor, contains exemptions for bank loans and credit card debt, but does not exempt other types of financed transactions.

  Senate Bill 414