Medicare Choice Act of 1994

Medicare Choice Act of 1994 - Amends title XVIII (Medicare) of the Social Security Act (SSA) to replace current provisions for payments to health maintenance organizations and competitive medical plans with provisions generally allowing Medicare beneficiaries enrolled under part B (Supplementary Medical Insurance) an annual choice of enrolling under certain conditions in: (1) any of the various competing Medicare health plans certified as meeting specified requirements and under contract with the Secretary of Health and Human Services in the Medicare market area established where they reside; (2) an employer-sponsored health plan; or (3) the Medicare fee-for-service coverage otherwise provided under SSA title XVIII.

Allows such individuals to choose supplementary benefits offered either by a Medicare supplemental policy or any of the plans above.

Requires the Secretary and the Physician Payment Review Commission to report biennially to the Congress on the method for determining the maximum per capita rate and the experience of each Medicare market area with the formula.

Directs the Secretary to: (1) determine annual fee-for-service spending limits for each Medicare market area pursuant to a specified formula; and (2) take specified actions providing for Medicare administrative simplification, including ensuring streamlined electronic processing of fee-for-service claims. Provides for enforcement of such limits, exempting low-cost areas.