This "medical reform" is just one part of legislation co-sponsored in the Senate by Sen James Inhofe (R)-Oklahoma and known as the Pilots Bill Of Rights II, an update to the first version passed into law a couple of years ago. Both the Senate bill S.571 and House bill H.R.1062 are bipartisan in their sponsorship.
Among several enforcement related issues addressed by PBOR2, the ability to fly without an FAA medical (provided you have a state issued drivers license) would (if passed by both houses and signed into law by the president) be extended to pilots of aircraft with 6 seats or less, no more than 5 pax carried and a gross weight of no more than 6,000 lbs. The maximum allowed altitude remains 14,000' and the new version as currently drafted would also remove the "VFR only" limitation.
Further information related to PBOR2 is available
HERE,
HERE and at numerous other websites. I'd personally like to see it passed and signed into law.
westhawk