A bill to amend the Internal Revenue Code of 1954 to allow individuals a deduction from gross income for contributions to a health services savings account and to amend title XVIII of the Social Security Act to establish a limited Medicare option for catastrophic care, and for other purposes.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow a deduction for amounts paid by or on behalf of an individual to an individual health services account. Limits the amount of the allowable deduction to any individual for any taxable year to $2,000. Defines "individual health services account" as a trust created or organized exclusively to pay qualified health expenses of the distributee. Sets forth various requirements for the trust. Defines "qualified health expenses" as amounts paid for: (1) care of the distributee at a skilled nursing facility; (2) care of the distributee at an intermediate care facility; (3) care at any other long-term facility which provides nursing or custodial care; (4) home health care of the distributee prescribed by, and under the supervision of, a qualified physician; (5) Medicare supplemental policies for the distributee; or (6) health services supplemental policies for the distributee. Defines a "health services supplemental policy" as a health insurance policy or other health benefit plan offered by a private entity to an individual which provides reimbursement for expenses incurred, or services for, catastrophic and long-term care. Requires the Secretary of …