To direct the Secretary of Health and Human Services to waive the application to the District of Columbia Chartered Health Plan, Inc., of the requirement under title XIX of the Social Security Act that limits the maximum number of individuals enrolled with a health maintenance organization who may be beneficiaries under the medicare or medicaid programs.

Directs the Secretary of Health and Human Services to waive retroactively to October 1, 1992, with respect to the District of Columbia Chartered Health Plan, Inc., the requirement under the Social Security Act that Medicare and Medicaid beneficiaries constitute less than 75 percent of the membership of a participating health maintenance organization, if the Secretary determines that such entity continues to make progress towards achieving compliance with such requirement.