Medical Malpractice Reform Act of 1985

Medical Malpractice Reform Act of 1985 - Establishes within the Department of Justice a program to fund State medical malpractice programs. Requires States to establish medical malpractice screening panels (Panels) to receive such funding. Grants such Panels original and exclusive jurisdiction to hear all claims of medical malpractice which are not against the United States.

Sets forth the powers of such Panels. Provides rules governing Panel decisions. Requires Panel decisions to be made within 30 days after a hearing. Empowers the Panel to determine the amount of damages owed to the claimant by each liable defendant and enter an order against such defendants. Directs States to provide judicial enforcement of such award if not paid promptly. Limits any court proceeding to enforce an order to pay an award to the issue of whether such payment was made according to the terms of the order.

Directs each State to permit recovery for noneconomic losses. Limits recovery for such losses to $250,000. Specifies damage award payment methods.

Permits any party to appeal the decision of the Panel to a State court of appropriate jurisdiction within 60 days. Entitles the appellant to a trial de novo where such court finds the Panel decision clearly erroneous. Grants such appellant the right to a trial by jury.

Requires the Panel or court to transmit to the State insurance commissioner and appropriate licensing body within 30 days a report on: (1) the Panel's or court's findings; and (2) any settlement agreement. Requires the State insurance commissioner to make such reports available for public inspection and to notify each malpractice insurance provider within the State. Allows malpractice insurance providers to adjust their rates for: (1) persons found liable; and (2) persons who entered into three or more settlement agreements that required payments to claimants.

Limits attorney's fees. Subjects an attorney who accepts excess payments to civil liability.

Directs each State to provide that any member or employee of the Panel shall be immune from suits for defamation, libel, or slander arising from the performance of official duties.

Directs the Attorney General to make specified payments to States for: (1) malpractice screening Panels; (2) malpractice studies; and (3) the development of health care facility risk management programs. Directs the Governor of a State receiving such funding to report to the Attorney General on the use of such payments.

Provides that decisions of the Attorney General regarding compliance with the requirements of this Act and the allocation and repayment of funds shall be final and not subject to judicial review.

Authorizes appropriations beginning in FY 1986.