Catastrophic Illness Expense Protection Amendments of 1987

Catastrophic Illness Expense Protection Amendments of 1987 - Amends the Internal Revenue Code to deny employers an income tax deduction for group health plan expenses unless the plan: (1) provides full catastrophic coverage for physician and hospital services provided to a covered employee or covered family member during any period within the plan year after the employee's out-of-pocket expenses for certain medical services exceed $2,000 ($3,500 for family coverage); and (2) does not cancel or differentiate in coverage except in cases of failure to pay premiums due.

Denies an exclusion from the gross income of highly compensated individuals of amounts contributed by an employer under an accident or health plan unless the plan provides full catastrophic coverage as described above.