A bill to amend the Internal Revenue Code of 1986 to provide for the establishment of individual medical accounts to assist in the payment of long-term and catastrophic medical care expenses, to provide that the earnings on such accounts will not be taxable, and for other purposes.

Amends the Internal Revenue Code to provide for the establishment of tax-exempt individual medical accounts created to pay the qualified long-term care expenses and qualified catastrophic care expenses of an individual. Grants a tax exclusion for distributions from such accounts for qualified expenses.

Requires qualified long-term care insurance to be treated as accident and health insurance for purposes of: (1) taxation of life insurance companies; and (2) exclusion for benefits received under such insurance and for employer contributions for such insurance.