A bill to establish a system of protection against catastrophic health care costs.

Amends the Internal Revenue Code to allow individuals an income tax credit for specified medical expenses (including insurance) paid for themselves, their spouses, and dependents. Limits such credit to 50 percent of the amount by which such medical expenses exceed ten, but are less than 20, percent of the individuals adjusted gross income. Allows a full credit for amounts by which such medical expenses exceed 20 percent of adjusted gross income.

Repeals the current income tax deduction for medical and dental expenses.

Directs the Secretary of the Treasury, in consultation with the Secretary of Health, Education, and Welfare, to draft regulations to prevent fraudulent claims under this Act and to provide for timely payments of refunds to individuals claiming a credit under the provisions of this Act.