Basic Health Insurance Tax Credit Act

Basic Health Insurance Tax Credit Act - States as the purpose of this Act the establishment of a system of protection against medical costs and the involvement of the private health insurance industry in the provision of medical care for the needy and indigent.

Amends the Internal Revenue Code to allow individual taxpayers a refundable income tax credit for amounts paid during the taxable year for basic health insurance. Requires that any insurance plan purchased by the taxpayer contain a $1,000 deductible, a co-payment provision for 20 percent of costs up to $15,000, and no co-payment requirement for expenses in excess of $15,000.

Revises the income tax deduction for medical expenses to allow a deduction for expenses, not otherwise covered by insurance, for the taxpayer, his dependents, or the medical care of a needy or indigent individual to the extent that such expenses exceed $500. (Present law provides for a deduction of all medical expenses in excess of three percent of the taxpayer's adjusted gross income.)

Repeals the limitation on the income tax deduction for amounts paid for medicine and drugs.

Directs the Congressional Budget Office to report to the Congress on the adequacy of the use of the refundable tax credit established by this Act in meeting healthcare needs as an alternative to Federal programs.