ARP Pharmacy Services, Inc. v. Gallagher Bassett Services, Inc.

In this case, we conclude that the reporting requirement in Civil Code section 2527 violates the free speech rights of prescription drug claims processors. We also conclude the court properly granted respondents’ special motion to strike and did not abuse its discretion in the award of attorney fees.

FACTUAL AND PROCEDURAL SUMMARY

Civil Code section 2527, subdivision (b) defines a prescription drug claims processor as “any nongovernmental entity which has a contractual relationship with purchasers of prepaid or insured prescription drug benefits, and which processes, consults, advises on, or otherwise assists in the processing of prepaid or insured prescription drug benefit claims submitted by a licensed California pharmacy or patron thereof.”

Since January 1984, every prescription drug claims processor in California has been required to conduct or obtain “the results of a study or studies which identifies the fees, separate from ingredient costs, of all, or of a statistically significant sample, of California pharmacies, for pharmaceutical dispensing services to private consumers. . . . The determination of the pharmacy’s fee made for purposes of the study or studies…