Catastrophic Illness Insurance Act

Catastrophic Illness Insurance Act - Establishes a Catastrophic Health Insurance Program under the Social Security Act. Sets forth the eligibility criteria for indviduals. Provides that every individual who: (A) is fully insured or otherwise entitled to monthly insurance benefits under title II of such Act; (B) is the wife, husband, widow, or widower, or dependent child of an individual who is fully insured or otherwise entitled to monthly insurance benefits; and (C) has appropriately applied therefor, shall be entitled to castastrophic health insurance benefits.

Delimits the scope of benefits. Includes therein hospital insurance benefits (hospital, post-hospital, home health, outpatient physical therapy and medical and other health services) and medical insurance benefits (medical and other health services and emergency hospital services).

Sets forth the terms and conditions for payment, deductibles and coinsurance. Directs that a payment shall be made from the Federal Catastrophic Health Insurance Trust Fund to an eligible individual equal to the reasonable cost of services covered by this Act which are furnished after the 60th day of inpatient hospital services, reduced by a coinsurance amount equal to one-fourth of the inpatient hospital deductible as determined by title XVIII of this Act.

Enumerates such reductions as they apply to other types of hospital insurance benefits. Provides for a general deductible from: (a) the reasonable costs of inpatient hospital services past the 60th day; and (b) inpatient hospital benefits of the higher of the following: (1) $2,000, or (2) $2,000 adjusted by the Consumer Price Index to reflect changes in fees for physician services (in $50 increments).

Provides for State agreements for coverage of annuitants and members of retirement systems and their dependents and survivors in order to extend the benefits of this Act to such individuals.

Creates, in the United States Treasury, a "Federal Catastrophic Health Insurance Trust Fund" to provide a reserve for payment of benefits authorized by this Act. Imposes a tax for catastrophic health insurance protection under the Internal Revenue Code of 1954, on the self-employment income of every individual and other individuals income in the following amounts for the calendar years indicated: (a) 0.30 percent of income for 1974, 1975, and 1976; (b) 0.35 percent of income for 1977 through 1981; and (c) 0.40 percent of income for each year thereafter.

Imposes similarly, an excise tax on employers on the amount of wages paid by the employer in the same percentages for the respective years indicated above.