MediKids Health Insurance Act of 2005

MediKids Health Insurance Act of 2005 - Amends the Social Security Act to add a new title XXII (Medikids Program) to provide for health insurance coverage for all children born after December 31, 2006, in a program modeled after Medicare that also includes prescription drugs and reduced cost-sharing for low-income children.

Directs the Secretary of Health and Human Services, during September of each year, to establish a monthly Medikids premium for the following year.

Establishes in the Treasury the Medikids Trust Fund to contain the Medikids premiums collected under the Internal Revenue Code.

Amends title XVIII to increase Medicare Payment Advisory Commission (MEDPAC) membership to 19.

Amends the Internal Revenue Code to impose a Medikids premium for the taxable year on a taxpayer with a dependent enrolled in the MediKids program, with exceptions for very low-income taxpaters.

Provides that in the case of a taxpayer who has a MediKid at any time during the taxable year, there shall be allowed as a refundable credit against income taxes an amount equal to the excess of: (1) the amount paid by the taxpayer during the taxable year as cost-sharing; over (2) 5% of the taxpayer's adjusted gross income for the taxable year.

Directs the Secretary of the Treasury to propose a gradual schedule of progressive tax changes to fund the MediKids program as the number of enrollees grows in the out-years.