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Ernst Introduces Drug Expense Forecasting System

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NU Online News Service, March 25, 7:08 p.m. – Ernst & Young L.L.P., New York, is setting up the RxManager program, a service that will help health insurers, health plans and pharmacy benefit managers analyze prescription expenses.

The system compares actual expenses with expense figures generated by a private Ernst prescription expense model.

The model predicts how much a group of patients will spend on prescriptions, using data for factors such as frequency of use and intensity of use as well as price and quality.

Ernst says it will adjust the tailor to fit each organization that uses it.

David Axene, a partner in Ernst’s health actuarial practice, will manage the service. Before Axene joined Ernst, he was an actuary at Milliman & Robertson Inc., Seattle. He helped found Milliman’s care guidelines division.