To amend the Internal Revenue Code of 1986 to restore the tax-exempt status of Blue Cross and Blue Shield companies which cover high-risk individuals, and for other purposes.

Amends the Internal Revenue Code to grant tax-exempt status to health insurance organizations that meet specified criteria, including requirements that the organization provide continuous open enrollment for individuals and small groups and offer policies covering preexisting conditions of high-risk individuals without a price differential within a community.

Repeals the current income tax deduction available to Blue Cross and Blue Shield organizations.