Medical Expense Tax Credit Act

Allows, under the Internal Revenue Code, a tax credit of 85 percent of the amount by which an individual's medical expenses exceeds 15 percent of his modified adjusted gross income for the taxable year.

Defines medical expenses as the medical care expenses of a taxpayer and his dependents for: (1) the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affection of any structure or function of the body; (2) medicine and drugs; and (3) one-half of the amounts paid during the taxable year for insurance which constitutes medical care for the taxpayer, his spouse, and dependents.

Repeals the existing deductions for medical, dental, etc. expenses.

Authorizes the President to study the adequacy of the use of refundable tax credits under the Internal Revenue Code (as amended by this Act) in meeting the health care needs of the Nation as an alternative to medicaid, medicare, and all other Federal medical assistance and health care programs, and to report to the Congress on his findings and conclusions not later than 36 months after the date of enactment of this Act.