A bill to amend the Social Security Act and the Internal Revenue Code of 1954 to eliminate medicare taxes and premiums, and to provide instead that both the hospital insurance program and the supplementary medical insurance program shall be financed from general revenues.

Eliminates, under the Internal Revenue Code, medicare taxes and premiums on self-employed individuals, employers, and employees. Provides that both the hospital insurance program and the supplementary medical insurance program of title XVIII (Medicare) of the Social Security Act shall be financed from general revenues.

Authorizes appropriations from time to time to the Federal Supplementary Medical Insurance Trust Fund of sums necessary to assure the prompt payment of such benefits and to provide an adequate contingency reserve.