That law is in response to the FAA dragging their feet on a petition proposed by the EAA and AOPA to amend the medical certificate requirements.
If changed, the requirement to have a formal aviator's medical certificate will be eliminated for a substantial population of the recreational pilots pool. However, there will still remain a requirement that the pilot "self regulate" themselves related to their fitness for flight.
What I am wondering however, is what the insurance companies are going to do. Even now, there are some differences with what can be legally done per the FAA and what is covered by some insurance policies.
Being an IFR rated pilot, it won't help me.