National Professional Liability Reform Act of 1987 - Establishes a program to provide development and incentive grants to States for enacting medical malpractice liability reforms. Sets forth the reforms which must be in effect for States to receive incentive grants, including: (1) requiring that future damage awards exceeding $100,000 be made by periodic payments; (2) limiting damages for noneconomic losses to $250,000; and (3) requiring that attorney fees be in accordance with a provided schedule. Allows the Secretary of Health and Human Services to require additional or alternative reforms.

Requires each State receiving an incentive grant to prepare and transmit a report to the Secretary every two years describing: (1) State liability reforms enacted, adopted, or in effect; (2) activities conducted by the State with grants received under this Act; and (3) any current problems with respect to health care professional liability or health care professional liability insurance. Requires the Secretary to transmit periodic reports to the Congress summarizing the information provided by the States. Authorizes appropriations.