National Medical Malpractice Insurance and Arbitration Act

National Medical Malpractice Insurance and Arbitration Act - Directs the Secretary of Health, Education, and Welfare, under the Public Health Service Act, to establish a program of national medical malpractice insurance. Authorizes the Secretary to enter into contracts with physicians and other health professionals and with health care institutions which choose to participate in such program to provide insurance coverage under this Act. States that insurance coverage provided by any contract entered into pursuant to this Act shall consist of insurance benefits for the insured against loss resulting from liability for medical malpractice respecting injury suffered as result of the provision of health care services by the insured. Establishes in the Treasury a Medical Malpractice Insurance Fund to be available, without fiscal year limitation: (1) for making such payments as may be required under this Act; and (2) to pay the necessary administrative expenses of carrying out the insurance program. Stipulates that the Secretary shall make insurance available in only those States which he finds have established programs: (1) for the initial arbitration of medical malpractice claims; (2) for the licensure of health professionals; and (3) for the licensure of health care institutions.

Sets forth the conditions for termination of participation in contracts of insurance by either the insured or the Secretary. States that the Secretary may not terminate any contract for insurance, expect upon specified findings, including that the insured is not complying substantially with the conditions of participation described in this Act.

Authorizes States to establish programs for the arbitration of medical malpractice claims, provided such program meets or exceeds the national standards established by this Act. Stipulates that any civil action arising from a claim for damages on account of alleged medical malpractice on the part of any health professional or health care institution may be instituted in a court of the State only after there has been an arbitration of the claim which forms the basis for such action.

Sets forth procedures regarding the initiation of arbitration, appointment of an arbitration panel, hearing procedures, law governing the decision of the arbitration panel, and proceedings subsequent to the decision of the arbitration panel.

Provides that there shall be established by statute or court rule a schedule of maximum contingent fee rates which may be charged or accepted by attorneys for services performed in connection with an arbitration or civil action arising from a claim for damages on account of alleged medical malpractice.

Provides that, within two years after enactment, the Secretary shall, in consultation with appropriate professional organizations, establish national standards for the licensure of health professionals and prepare appropriate examinations for the initial licensure and appropriate procedures for the subsequent renewal of such licensure.

Establishes within the Department of Health, Education, and Welfare the Medical Malpractice Insurance Administration. Directs the Secretary to perform the functions authorized by this Act through the Medical Malpractice Insurance Administration.

Provides that the Secretary shall establish and appoint an advisory council to be known as the Advisory Council on Medical Malpractice. States that the Council shall advise, consult with, and make recommendations to, the Secretary with respect to (1) the preparation of any regulations prescribed in accordance with this Act, and (2) the implementation and administration of this Act.