To amend the Internal Revenue Code of 1986 to extend the deduction for health insurance costs of self-employed individuals for an indefinite period, and to increase the amount of such deduction.

Amends Internal Revenue Code provisions governing the income tax deduction for the health insurance costs of self-employed individuals to: (1) make the deduction permanent (under current law it will expire after tax year 1989); and (2) phase in an increase in the allowable deduction, reaching 100 percent for taxable years beginning in 1994 and thereafter.