Bipartisan Patient Protection Act of 2001-Part II

Bipartisan Patient Protection Act of 2001 - - Part II - Amends the Internal Revenue Code to: (1) with respect to Archer Medical Savings Accounts, increase the number of permitted account participants, increase the permitted size of a "small employer" from 50 to 100 or fewer employees, and extend, by two years, the cut-off year; (2) allow an eligible small employer a limited health insurance expenses credit; and (3) consider a "qualified health benefit purchasing coalition" (a non-profit corporation selling health insurance for small employers through licensed insurers) distribution as a distribution for a charitable purpose.

Directs the Secretary of Health and Human Services to establish a program to award demonstration grants to States to allow States to demonstrate the effectiveness of innovative ways to increase access to health insurance through market reforms and other innovative means. Authorizes appropriations.