H.427, introduced by Representative Galfetti, seeks to reform medical malpractice actions in Vermont by implementing limits on recoverable damages and establishing pretrial screening panels for medical malpractice claims. The bill introduces new legal language under 12 V.S.A. § 1914, which sets caps on damages for pain and suffering at $250,000 for claims against individuals and $500,000 for claims against entities, with additional provisions for wrongful death and punitive damages. Additionally, a new chapter, 12 V.S.A. chapter 223, is created to outline the formation and procedures for these pretrial screening panels, which aim to expedite the resolution of medical injury claims and reduce litigation costs.

The screening panels will consist of a chair selected by the Chief Justice, along with health care practitioners and attorneys, and are designed to identify meritorious claims early while encouraging settlements before trial. The bill mandates that the same panel members attend all hearings for a specific claim unless agreed otherwise, and requires the panel to maintain a confidential electronically recorded record of proceedings. It also establishes guidelines for the admissibility of panel findings in court trials and mandates the Court Administrator to compile annual reports on medical injury claims. The act is set to take effect on July 1, 2025, aiming to balance the interests of patients and medical providers by streamlining the claims process and limiting potential damages.