To amend title XVIII of the Social Security Act and the Internal Revenue Code of 1986 with respect to revising benefits and financing provided under the Medicare Catastrophic Coverage Act of 1988.

Title I: Provisions Relating to Part A of Medicare Program and Supplemental Medicare Premium - Amends the Internal Revenue Code to reduce Supplemental Medicare Premium rates. Makes such premium applicable only to those who opt for Medicare part B (Supplementary Medical Insurance) coverage. Amends the Medicare program to abolish the Federal Hospital Insurance Catastrophic Coverage Reserve Fund.

Title II: Provisions Relating to Part B of the Medicare Program - Gives individuals a one-time option of disenrolling from the part B program. Extends the basic part B premium through 1993. Increases such premium and the catastrophic drug deductible. Delays Medicare payments near and until the close of each fiscal year from 1990 through 1993. Revises catastrophic coverage funding formulas and accounts.