To repeal medicare catastrophic coverage provisions effective in years after 1989 and the supplemental medicare premium, and for other purposes.

Amends part A (Hospital Insurance) of title XVIII (Medicare) of the Social Security Act to reinstate coverage for post-hospital extended care services on the same terms as such coverage was provided prior to passage of the Medicare Catastrophic Coverage Act of 1988 (the Act).

Repeals the Act's Supplemental Medicare Premium, Federal Hospital Insurance Catastrophic Coverage Reserve Fund, and limitation on a beneficiary's out-of-pocket costs under part B (Supplementary Medical Insurance) of the Medicare program. Limits the Act's drug benefits to immunosuppressants and home intravenous drugs. Delays coverage of such benefits, screening mammographies, and in-home care for chronically dependent individuals, from 1990 to 1991.

Makes changes in Medicare part B monthly premium financing, including the elimination of the prescription drug monthly premium. Repeals the Federal Catastrophic Drug Insurance Trust Fund.

Requires Medicare supplemental health insurance policies to reinstate the coverage of policyholders who terminated coverage as of January 1, 1989, on terms at least as favorable to the policyholder as existed prior to such date.