Medical Independence, Privacy, and Innovation Act of 2005

Medical Independence, Privacy, and Innovation Act of 2005 - Amends the Internal Revenue Code to allow a taxpayer to deduct all uncompensated medical expenses paid for by the taxpayer (currently, only medical expenses exceeding 7.5% of the taxpayer's adjusted gross income are deductible).

Sets forth the tax treatment for medical checking accounts, including: (1) exempting such accounts from certain taxes; (2) allowing individuals a deduction and a credit for contributions to such accounts; and (3) excluding from gross income any amounts paid or distributed from such an account which are used to pay qualified medical expenses of an account holder.

Decreases the minimum annual deductibles under a high deductible health plan for purposes of health savings accounts or Archer medical savings accounts.

Makes modifications to regulations regarding the privacy of individually identifiable health information.

Requires the Secretary of Health and Human Services to promulgate the Universal Health Privacy Declaration to allow an individual to prohibit a health care provider from using or disclosing the individual's protected health information for treatment without prior consent.

Amends the Federal Food, Drug, and Cosmetic Act to: (1) modify the definition of a drug to exclude articles intended for mitigation or prevention of disease in man or other animals; (2) remove the requirement that a new drug application must include information on the drug's effectiveness; and (3) specify patent information that must be included in an application for approval of a new drug.

Prohibits the granting of an exclusive or partially exclusive license regarding an invention made with federal assistance, with certain exceptions.

Revises provisions requiring promulgation of regulations permitting the importation of prescription drugs by deleting the requirement that such regulations include additional provisions the Secretary determines to be appropriate as a safeguard to protect the public health or facilitate importation.