FIRST AMENDMENT
ARP Pharmacy v. Gallagher Bassett Services (April 27, 2006, 2nd Dist.) 2006 WL 1101613.
A pharmacy sued a drug claims processor for failing to provide the fee studies concerning prescription drug prices to it as required by law. California Civil Code § 2527 required claims processing companies to conduct their own studies of the profit margins of pharmacies, and then provide the results of the studies to pharmacies themselves. The legislative history showed that the law was intended to urge the claims processors, by use of statistical information, to compensate pharmacists at a fairer rate for providing pharmaceutical services to their insured.
The court held that the First Amended invalidates Civil Code section 2527, and it was struck down. (It has been on the books since 1982). Free speech not only guarantees people and business the right to say what they want, but also to be free from being compelled by the government to say anything at all. The forced "study" was a form of speech. The fact that the government required the claims processors to conduct a study is forcing them to generate a specific type of speech.