Health Maintenance Organization Assistance Act

Health Maintenance Organization Assistance Act - Establishes a demonstration program providing assistance to public and private organizations to plan, develop and expand health maintenance organizations during the next five fiscal years. States that the assistance will be in the form of grants and contracts for planning costs with priority for medically underserved areas and grants and contracts for costs of initial operation in medically underserved areas and grants and contracts for costs of initial operation in medically underserved areas.

Requires review of, and opportunity to comment on, applications by State and local health planning authorities. Authorizes joint funding for all Federal assistance to any health maintenance organization with authority to waive normal contracting procedures if necessary. Authorizes the Secretary of Health, Education, and Welfare to carry out his responsibilities related to the provision of health care to Indians by contracting with health maintenance organizations.