To amend the Internal Revenue Code of 1986 to provide for the treatment of excess benefit arrangements of certain tax-exempt group medical practices, and for other purposes.

Amends the Internal Revenue Code to: (1) prohibit applying certain provisions concerning the maximum amount which may be deferred under deferred compensation plans of State and local governments and tax-exempt organizations to any qualified excess benefit arrangement of a qualified medical entity; and (2) exclude benefits provided under such an arrangement from being used to determine whether any other plan is an eligible deferred compensation plan and the amount which may be deferred under such other plan. Exempts plans maintained by tax-exempt qualified medical entities from the reduction of the limit under such provisions for other elective deferrals. Limits the maximum amount of compensation of any one participant which may be deferred under a qualified excess benefit arrangement to an amount not to exceed the lesser of: (1) $25,000; or (2) 33 and one-third percent of the participant's includible compensation. Defines "qualified excess benefit arrangement."