The Reformulary Group has introduced an early warning system that aims to help plan administrators and employers monitor and prepare for new-high cost drugs.

The system evaluates new high-cost prescription drugs entering the marketplace and forecasts the expected impact of those drugs to insurance carriers, third-party administrators and employers.

Read: Public drug plans’ medication spending rose 10% in 2015-16: PMPRB

Helen Stevenson, founder and chief executive officer of the Reformulary Group, said the system will provide employers with the ability to predict what drugs are coming on the market and their potential impact. “It’s like having a department of experts at their fingertips through a single platform,” she added.

The tool will also address the continual trend of increased drug costs over the years, she said. “Prescription drug costs have increased fourfold in 20 years. Specialty drug spend is expected to double, from $2.6 billion today to $5.2 billion in 2020.”

Read: A look at the prevalence of cost-control measures in private drug plans

Insurance carrier Green Shield Canada is already using the new tool to gather information about new drugs that will help shape its strategies, according to a news release.

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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