To amend the Internal Revenue Code of 1986 to allow a full, permanent deduction for the health insurance costs of self-employed individuals and to allow a refundable credit for certain health plan costs of small employers.

Amends the Internal Revenue Code provisions relating to the income tax deduction for the health insurance costs of self-employed individuals to: (1) increase the allowable deduction from 25 percent to 100 percent; and (2) make the deduction permanent (under current law it will expire after June 30, 1992).

Allows a tax credit of 40 percent of the amount paid or incurred for a qualified group health plan by a very small employer or a small employer. Describes a very small employer as one with less than 24 full-time employees and whose average annual rate of pay to such employees is $18,000 or less. Describes a small employer as one (other than a very small employer) with less than 100 employees.