Ernst & Young LLP Health Actuarial Services Launches 'RxManager'; New Prescription Drug Cost Management Service Spearheaded by Industry Leader

Business Wire, March 25, 2002

Business Editors, Health/Medical Writers

NEW YORK--(BUSINESS WIRE)--March 25, 2002

Ernst & Young LLP announced today that David Axene, a partner in the Health Actuarial Services Practice and a recognized industry leader, will be launching the company's new RxManager service designed to help health plans, large payers and PBMs manage prescription expenses.

The service is built around Ernst & Young's proprietary model, which offers data that accounts for frequency, utilization and intensity as well as price, quality and return on investment. The model will be adjusted for each organization and used as a tool by E&Y experts to offer the support and guidance required to make utilization decisions.

The service includes four steps: identification of best practices, benchmarking, bottomline implications and implementation. Companies can tailor the service to their needs and can choose some or all of the elements.

"With the rate of pharmaceutical inflation and consumption outpacing general medical care by as much as ten to one, there is a real need to understand the factors that have set this trend in motion," explains Axene. "Understanding utilization and the resulting outcomes is crucial."

With over 30 years of health care experience, Axene pioneered the integration of actuarial science with the practice of medicine. Prior to joining Ernst & Young LLP, Axene served as equity principal with a leading actuarial consulting firm where he led the company's healthcare management consulting activities and was a founder of the Care Guidelines division.

"David's history of thought leadership and understanding of the current landscape makes him the ideal leader for this exciting new service," said Daryl Veach, practice leader for Ernst & Young LLP Health Actuarial Services.

Ernst & Young has developed a simple diagnostic test to help organizations understand the extent to which the RxManager service may benefit them. The test offers preliminary feedback on prescription drug expenditures and the potential for bottomline improvements. Information about the diagnostic test can be obtained by sending an email request to info.RxManager@ey.com.

Ernst & Young's Health Actuarial Services Practice has been serving entities within all categories of the health care industry for over 10 years. They have become a leading advisor within the industry by offering an array of value-added services including merger integration support, crisis management, predictive modeling, disease management analysis, product development, claims services, pricing assessment, and counsel on breaking news affecting the industry in addition to general actuarial services.