Beeman v. Anthem Prescription

Court of Appeals for the Ninth Circuit·Decided July 10, 2012·No. 07-56692·Published

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

JERRY BEEMAN AND PHARMACY  SERVICES, INC., doing business as Beemans Pharmacy; ANTHONY HUTCHINSON AND ROCIDA INC., doing business as Finleys Rexall Drug; CHARLES MILLER, doing business as Yucaipai Valley Pharmacy; JIM MORISOLI AND AMERICAN SURGICAL PHARMACY INC., doing business as American Surgical Pharmacy; BILL PEARSON AND PEARSON AND HOUSE, on behalf of themselves and all others No. 07-56692 similarly situated and on behalf of D.C. No.

the general public; doing business as Pearson Medical Group  CV-04-00407-VAP Central District of

Pharmacy, California,

Plaintiffs-Appellees,

Riverside

v.

ANTHEM PRESCRIPTION MANAGEMENT, LLC; ARGUS HEALTH SYSTEMS, INC.; BENESCRIPT SERVICES, INC.; FFI RX MANAGED CARE; FIRST HEALTH SERVICES CORPORATION; MANAGED PHARMACY BENEFITS, INC., formerly known as Cardinal Health MPB Inc.; NATIONAL MEDICAL HEALTH CARD SYSTEMS, INC.; PHARMACARE MANAGEMENT SERVICES, INC.;

7922 BEEMAN v. ANTHEM PRESCRIPTION MANAGEMENT

PRIME THERAPEUTICS; RESTAT  CORPORATION; RX SOLUTIONS, INC.; TMESYS, INC.; WHP HEALTH INITIATIVES, INC.; MEDE AMERICA  CORP., Defendants-Appellants.

JERRY BEEMAN AND PHARMACY  SERVICES, INC., doing business as Beemans Pharmacy; ANTHONY HUTCHINSON AND ROCIDA INC, doing business as Finleys Rexall Drug; CHARLES MILLER, doing business as Yucaipai Valley Pharmacy; JIM MORISOLI AND AMERICAN SURGICAL PHARMACY INC., doing business as No. 07-56693 American Surgical Pharmacy; BILL D.C. No. PEARSON AND PEARSON AND HOUSE, CV-02-01327-VAP on behalf of themselves and all Central District of others similarly situated and on behalf of the general public; doing  California,

Riverside

business as Pearson Medical Group Pharmacy, ORDER AND Plaintiffs-Appellees, AMENDED ORDER

v.

TDI MANAGED CARE SERVICES, INC., doing business as ECKERD HEALTH SERVICES; MEDCO HEALTH SOLUTIONS, INC.; EXPRESS SCRIPTS, INC.; ADVANCE PCS, Advance PCS Health, L.P.; RX SOLUTIONS, INC., Defendants-Appellants.

BEEMAN v. ANTHEM PRESCRIPTION MANAGEMENT 7923 Filed June 6, 2012 Amended July 10, 2012

Before: Alex Kozinski, Chief Judge, Harry Pregerson, Diarmuid F. O’Scannlain, Sidney R. Thomas, Kim McLane Wardlaw, William A. Fletcher, Ronald M. Gould, Marsha S. Berzon, Johnnie B. Rawlinson, Richard R. Clifton and N. Randy Smith, Circuit Judges.

ORDER

Appellants’ request to modify the counsel listing in the Appendix to the Court’s June 6, 2012 Order is GRANTED. The order filed June 6, 2012 is amended by deleting the current Appendix and adding a new Appendix as follows:

APPENDIX

Counsel for Plaintiffs-Appellees

Michael A. Bowse Browne George Ross LLP 2121 Avenue of the Stars, Suite 2400 Los Angeles, California 90067

Alan M. Mansfield The Consumer Law Group 10200 Willow Creek Road, Suite 160 San Diego, California 92131

Counsel for Defendant-Appellant Express Scripts, Inc.

Theodore J. Boutrous, Jr. Gail E. Lees Christopher Chorba Gibson, Dunn & Crutcher LLP 7924 BEEMAN v. ANTHEM PRESCRIPTION MANAGEMENT 333 South Grand Avenue Los Angeles, CA 90071-3197

Thomas M. Dee Christopher A. Smith Husch Blackwell LLP 190 Carondelet Plaza, Suite 600 St. Louis, MO 63105-3441

Counsel for Defendant-Appellant Anthem Prescription Management LLC

Thomas M. Peterson Molly Moriarty Lane Morgan Lewis & Bockius LLP One Market, Spear Street Tower San Francisco, California 94105

Counsel for Defendant-Appellant Argus Health Systems, Inc.

Shirley M. Hufstedler Benjamin J. Fox Morrison & Foerster LLP 555 West Fifth Street, Suite 3500 Los Angeles, CA 90013

Counsel for Defendant-Appellant Benescript

Kent A. Halkett Musick Peeler & Garrett, LLP One Wilshire Boulevard, Suite 2000 Los Angeles, CA 90017

Counsel for Defendant-Appellants AdvancePCS; AdvancePCS Health L.P., successor in interest to FFI RX Managed Care, Inc.; PharmaCare Management Services, Inc.; TDI Managed Care Services, Inc. dba Eckerd Health Services

Jason Levin Steptoe & Johnson LLP

BEEMAN v. ANTHEM PRESCRIPTION MANAGEMENT 7925 633 West Fifth Street, Suite 700 Los Angeles, CA 90071

Martin D. Schneiderman Steptoe & Johnson LLP 1330 Connecticut Avenue, N.W. Washington, DC 20036

Counsel for Medco Health Solutions, Inc.

Richard S. Goldstein Orrick, Herrington & Sutcliffe LLP 51 West 52nd Street New York, NY 10019-6142

Counsel for Defendant-Appellant First Health Services Corp.

Thomas Makris Pillsbury Winthrop Shaw Pittman LLP 2600 Capitol Avenue Sacramento, CA 95816

Brian D. Martin Pillsbury Winthrop Shaw Pittman LLP 510 West Broadway, Suite 1100 San Diego, CA 92101

Counsel for Defendant-Appellant Cardinal Health MPB, Inc.

Robert F. Scoular SNR Denton US LLP 601 South Figueroa Street, Suite 2500 Los Angeles, CA 90017

Rachel Milazzo Stephen M. O’Brien III SNR Denton US LLP 7926 BEEMAN v. ANTHEM PRESCRIPTION MANAGEMENT 211 North Broadway, Suite 3000 St. Louis, MO 63102

Counsel for Defendant-Appellant National Medical Health Card

Nicholas P. Roxborough Marina N. Vitek Roxborough, Pomerance, Nye & Adreani LLP 5820 Canoga Avenue, Suite 250 Woodland Hills, CA 91357

Counsel for Defendant-Appellant Prime Therapeutics

J. Kevin Snyder Vivian I. Kim Dykema Gossett LLP 333 South Grand Avenue, Suite 2100 Los Angeles, CA 90071

Counsel for Defendant-Appellant Restat, LLC

Sean M. Sherlock Snell & Wilmer LLP 600 Anton Boulevard, Suite 1400 Costa Mesa, CA 92626

Counsel for Defendant-Appellant RX Solutions, Inc.

Robert Arthur Muhlbach Kirtland & Packard 2041 Rosecrans Avenue, 4th Floor El Segundo, CA 90245

Counsel for Defendant-Appellant Tmesys, Inc.

Kurt C. Peterson Margaret Anne Grignon

BEEMAN v. ANTHEM PRESCRIPTION MANAGEMENT 7927 Kenneth N. Smersfelt Brett L. McClure Reed Smith LLP 355 South Grand Ave., Suite 2900 Los Angeles, CA 90071

Counsel for Defendant-Appellant WHP Health Initiatives

Matthew Oster McDermott Will & Emery 2049 Century Park East, Suite 3800 Los Angeles, CA 90067

Counsel for Defendant-Appellant Mede America Corporation

Neil R. O’Hanlon Hogan Lovells US LLP 1999 Avenue of the Stars, Suite 1400 Los Angeles, CA 90067

The Clerk shall file this order with the Supreme Court of California.

ORDER

This appeal requires us to decide whether a California statute , Civil Code section 2527, compels speech in violation of the California Constitution. The statute requires drug claims processors to generate studies about pharmacy pricing, summarize the results and disseminate the information to their clients . The three intermediate California appellate courts and the two state trial courts that have addressed this question have held that the reporting requirement of section 2527 violates article I, section 2 of the California Constitution. See ARP Pharmacy Servs., Inc. v. Gallagher Bassett Servs., Inc., 138 Cal. App. 4th 1307 (2006); A.A.M. Health Grp., Inc. v.

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