Health Incentives Reform Act of 1979

Health Incentives Reform Act of 1979 - Amends the Internal Revenue Code to include in a taxpayer's gross income any contribution to him or on his behalf by his employer to a health benefit plan, or dental benefit plan, or both, for any month: (1) to the extent that such contribution amount exceeds a specified limitation; or (2) if such employer fails to comply during that month with any of certain specified requirements.

Limits the employer's contribution to: (1) $50 for employee-only coverage, adjusted according to a specified formula for fluctuations in the Consumer Price Index medical care component; (2) $100 for employee-and-spouse coverage, adjusted similarly; and (3) $125 for family group-coverage, adjusted similarly.

Requires any employer having a total of more than 100 employees covered under any health benefit plan offered by such employer to provide that such plan offers at least three options for coverage, each of them offered by a separate carrier. Prescribes application of such requirement to component members of a controlled group of corporations.

Requires the employer to make the same amount of contribution for each option offered, regardless of differences.

Requires continuity of coverage for family members following the death, termination, or divorce of the employee.

Requires minimum benefits from each plan (or option thereof) which comprise the same types of services for which coverage is provided under title XVIII of the Social Security Act.

Requires each plan (or option) to provide for payment of 100 percent of the cost of services during a catastrophic benefit period.