A bill to amend the Internal Revenue Code of 1954 to provide certain physicians' and surgeons' mutual protection associations with tax-exempt status for certain purposes, and for other purposes.

Amends the Internal Revenue Code to grant tax-exempt status to a physicians' and surgeons' mutual protection association established to provide malpractice insurance to its members. Characterizes payment for malpractice insurance made to such an association by its physician or surgeon members as a deductible business expenses.