Workers' Health Insurance Demonstration Act of 1988

Workers' Health Insurance Demonstration Act of 1988 - Amends the Public Health Service Act to create a new title concerning employee health insurance pilot programs.

Authorizes the Secretary of Health and Human Services to approve pilot projects for the development and marketing of low-cost small business health insurance plans. Declares that approved plans shall not be subject to State laws concerning certain aspects of health benefits.

Authorizes the Secretary to approve projects to study the feasibility of a health information brokering service to address the needs of small employers in obtaining health insurance benefits by providing technical assistance. Requires, if such brokering service is feasible, that development funding be provided.

Authorizes the Secretary to approve up to three demonstration projects to extend coverage for medical assistance, other than for services under provisions of title XIX (Medicaid) of the Social Security Act, to employees of small employers if: (1) employers are unable to obtain insurance at no more than the average premium cost in their State or locality; and (2) other conditions relating to premium payment and premium cost off-set against the required Federal and State matching shares are met. Requires that the projects be conducted in a rural area, an urban area, and in an industry that has a high number of uninsured workers.

Authorizes the Secretary to approve pilot projects to study, develop, and market mechanisms, not including State risk pools for high risk individuals, that address the problems of providing affordable health insurance to targeted elements of the employed, high risk population.

Directs the Secretary to develop up to three projects to evaluate the effectiveness of providing subsidies to self-employed individuals as an incentive to purchase health insurance.

Directs the Secretary to conduct a study of the impact of the Hawaii Prepaid Health Care Act, including the impact of extending the requirements of the Act to all employers in all States.

Authorizes the Secretary to approve: (1) a survey of small businesses to identify the factors involved in decisions to offer or not offer employee health insurance; and (2) a pilot project to develop plans and a marketing and delivery system based on the results of the survey. Authorizes the Secretary to waive compliance with any Federal regulation, including the commonality of employment interest restriction, if certain safeguards are present.

Authorizes the Secretary to approve a pilot project to develop a regional voluntary employee beneficiary association to provide health insurance in an industry in which the average employer size is less than 25 employees. Authorizes the Secretary to waive compliance with any Federal regulation, including the geographic area restriction, if certain safeguards are present.

Prohibits the Secretary from approving certain projects authorized by this Act unless the applicant will expend, from non-Federal sources, at least one-third of the amount of the grant.

Requires approved applicants to submit an annual report evaluating their projects. Directs the Secretary to submit to the Congress an evaluation of the success of any project designed to increase the number of employees of small employers who have health insurance that is conducted by an entity that has received no Federal funds under this Act.

Directs the Secretary to transfer amounts appropriated to the Department of Health and Human Services, for FY 1988 through 1990, for programs that provide medical services for the uninsured, for the purposes of this title.