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

Amends the Medicare Catastrophic Coverage Act of 1988 (the Act) to repeal provisions: (1) setting a cap on an individual's out-of-pocket expenses under part B (Supplementary Medical Insurance) of title XVIII (Medicare) of the Social Security Act; (2) establishing the Prescription Drug Payment Review Commission and outpatient drug study and reporting requirements; (3) creating the Federal Catastrophic Drug Insurance Trust Fund and the Medicare Catastrophic Coverage Account; and (4) imposing a supplemental Medicare premium on Medicare beneficiaries whose tax liability equals or exceeds $150. Delays, for one year, implementation of the Act's home intravenous drug therapy and screening mammography programs.

Amends part A (Hospital Insurance) of the Medicare program to cover post-hospital extended care services for up to 100 days in a calendar year and other extended care services to the extent the Secretary of Health and Human Services finds such services will not result in an increase of Medicare expenditures or alter the acute care nature of the benefit. (Currently, coverage of extended care services is provided for up to 150 days in a calendar year.) Modifies the method of determining the coinsurance amount required of recipients of post-hospital extended care services. Directs the Secretary to report to the Congress by February 1, 1990, on reasons for the unexpected increase in cost estimates of Medicare extended care services, including recommendations for further modification of such coverage while the provision of long-term care benefits receives consideration.

Limits Medicare drug benefits to immunosuppressants and home IV drugs.

Provides for the annual adjustment of the Medicare part B premium in a manner which takes into account this Act's changes in catastrophic coverage.

Requires Medicare supplemental insurance policies from which individuals terminated their coverage as of January 1, 1989, (or the earliest renewal date thereafter) to offer such individuals a continuation of coverage under terms respecting treatment of pre-existing conditions and group rating of premiums which are at least as favorable as terms which existed on December 31, 1988. Directs the Secretary to: (1) take this Act's amendments into account in determining the payments to be made to health maintenance organizations; (2) require such organizations to adjust their agreements with Medicare beneficiaries in consideration of such amendments; and (3) notify Medicare beneficiaries of changes made by this Act's amendments.

Imposes a post-hospital services coinsurance charge on recipients of such services on a "spell of illness" rather than yearly basis.

Delays implementation of the Act's coverage of in-home respite care for certain chronically dependent individuals from 1990 to 1991. Alters eligibility criteria for such coverage.