Health Planning and Resource Allocation Act of 1985

Health Planning and Resource Allocation Act of 1985 - Amends title XV (National Health Planning and Development) of the Public Health Service Act to replace the existing local planning agencies with a single State health services and resource allocation agency, designated by the State Governor.

Directs such agency to: (1) develop and administer the State health services and resource allocation plan; (2) develop and administer the State administrative program; (3) administer the certificate of need program; and (4) prepare the annual report.

Requires a State agency to review a certificate of need application according to procedures and criteria developed by such agency in accordance with the Secretary of Health and Human Services' regulations.

Requires the Governor of each State to appoint a health planning State Advisory Board. Requires two-thirds of each Board's membership to be major purchasers of health care services.

Requires each State agency to report annually to the Governor, who shall transmit such report to the Secretary.

Authorizes State grants (based on population) for health planning and resource allocation. Sets minimum grant amounts. Requires the Governor to submit a grant application. Permits the Governor to use such funds for entities within the State providing health planning services or support services for the State agency. States that the Federal share shall be 75 percent. Authorizes appropriations beginning with FY 1986.

Authorizes grants to local planning agencies to: (1) assist in health planning and resource allocation; and (2) encourage the development of cost-effective alternatives to current health care financing and delivery systems. States that the Federal grant share shall be 95 percent in FY 1986, 85 percent in FY 1987, and 75 percent in FY 1988 and each succeeding fiscal year. Authorizes appropriations beginning in FY 1986.

Directs the Secretary, by grant or contract, to assist in the operation of three health planning centers, with priority given to centers in existence as of September 30, 1985. Sets forth assistance requirements. Authorizes appropriations beginning with FY 1986.

Establishes a 15 member National Health Planning and Resource Control Council to: (1) review the annual reports required by this Act; and (2) advise the Secretary regarding health planning, congressional reporting requirements, and resource allocation.

Requires the Secretary to report to the Congress by March 1, of each year regarding health planning, resource allocation, and cost containment.