About Magellan Health, Inc.

Magellan Health has charted its course to become one of the largest managed behavioral health care companies in the nation. The company manages mental health plan, employee assistance, and work/life programs through its nationwide third-party provider network. Magellan also provides radiology benefits management, specialty pharmaceutical management, and Medicaid management. Overall, it serves some 68 million members through contracts with federal and local government agencies, insurance companies, and employers. Magellan's Pharmacy Management segment's services include administration, billing, claims handling, technology programs, and coordination of care.


Magellan operates through two primary business segments: Healthcare (which brings in some 55% of revenue) and Pharmacy Management (some 45% of revenue).

The Healthcare segment provides managed behavioral health care services and employee assistance program (EAP) services, as well as managing other specialty areas including diagnostic imaging and musculoskeletal health. It also provides the integrated management of physical, behavioral, and pharmaceutical health care for special populations through Magellan Complete Care (MCC).

Magellan's Pharmacy Management segment offers products and services to help its clients manage pharmacy benefit programs. It provides pharmacy benefit management (PBM) services, pharmacy benefit administration (PBA) for Medicaid and other government-sponsored programs, medical pharmacy management, and programs to integrate management of specialty drugs across medical and pharmacy benefits in complex cases.

Geographic Reach

Magellan Health operates about 60 offices in nearly 30 states and Washington, DC.

Sales and Marketing

Magellan's customers include health plans and employer groups, as well as government and military agencies in some 30 states and Washington, DC. The company also provides services to select pharmaceutical manufacturers. It has a network of some 175,000 health care providers, as well as a third-party network of facilities including psychiatric and substance abuse hospitals, partial hospitalization facilities, rehab centers, and community health centers.

Advertising expenses in 2016 totaled some $2 million. The company markets its offerings through print media, event sponsorships, and promotional items.

Financial Performance

Magellan's revenues have been trending upward over the past few years. In 2016 revenues increased 5% to $4.8 billion. That growth was led by the pharmacy benefit management and dispensing business but was partially offset by a decline in the managed care business. That year the company had terminated contracts of some $666 million, but revenues from acquired companies and increased membership from existing customers helped boost overall sales.

Despite the higher revenues, net income fell between 2012 and 2015. It rebounded in 2016, rising 148% to $77.9 million due largely to a 17% decrease in cost of care expenses.

However, cash flow from operations fell 72% to $66.7 million in 2016. Changes in assets and liabilities drove that decline.


Magellan's growth strategy includes three primary areas of focus. First, it aims to expand its management programs for special populations such as individuals dealing with serious mental illness. The company is expanding Medicaid management programs for certain high-cost populations including dual-eligibility patients (those qualifying for both Medicare and Medicaid services), forming partnerships and ventures with regional health plans. According to the Centers for Medicare and Medicaid Services, Medicaid enrollment is projected to increase rapidly over the next decade, and Magellan intends to take advantage of that increase by marketing itself to states that need guidance navigating the public mental health system. Towards that end, it agreed to buy Senior Whole Health in 2017; that purchase will provide entry into Massachusetts' Senior Care Options program and New York City's managed long-term care market.

Secondly, Magellan is working to expand its pharmacy management business. It has acquired pharmacy benefit management (PBM) companies such as Veridicus Holdings (in 2016) 4D Pharmacy Management Systems (2015). The company markets these offerings to new and existing clients.

Magellan's third primary strategy is to grow its existing behavioral health care and other specialty businesses. It does this by promoting and adding new services; acquisitions and organic measures have allowed the company to enter new business segments including radiology benefits management, which is showing rapid growth.

Mergers and Acquisitions

Magellan acquired Senior Whole Health for $400 million in 2017. The formerly privately held Senior Whole Health provides Medicare and Medicaid dual-eligible benefits in the states of Massachusetts and New York. With that purchase, Magellan expanded into Massachusetts' Senior Care Options program, as well as the managed long-term care market in New York City.

In 2016 Magellan purchased Virginia-based Armed Forces Services Corporation for $117.5 million; that deal expanded its business with military and veteran agencies. Later that year, it acquired Utah-based pharmacy benefit management (PBM) firm Veridicus Holdings for some $74.5 million. Veridicus provides PBM services, medication therapy management, clinical care management, and Medicare Part D services to employers, sponsors, and third-party administrators.

Also in 2016, the company purchased The Management Group for $15 million. That firm provides home and long-term care services; the deal aligned with Magellan's plans to expand in the long-term services and supports market.

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Magellan Health, Inc.

4800 N Scottsdale Rd Ste 4400
Scottsdale, AZ 85251-7680
Phone: 1 (602) 572-6050
Fax: 1 (860) 507-1990


  • Employer Type: Public
  • Stock Symbol: MGLN
  • Stock Exchange: NASDAQ
  • Chairman and CEO: Barry M. Smith
  • CFO: Jonathan N. Rubin
  • Chairman and CEO: Barry M. Smith
  • 2017 Employees: 10,700

Major Office Locations

  • Scottsdale, AZ

Other Locations

  • Anchorage, AK
  • Glendale, AZ
  • Mesa, AZ
  • Phoenix, AZ
  • Rancho Cordova, CA
  • Avon, CT
  • Miami, FL
  • Plantation, FL
  • Macon, GA
  • Des Moines, IA
  • Bridgewater, MA
  • Columbia, MD
  • Jefferson City, MO
  • Maryland Heights, MO
  • Greensboro, NC
  • Parsippany, NJ
  • Albany, NY
  • Astoria, NY
  • New York, NY
  • Bethlehem, PA
  • Langhorne, PA
  • Newtown, PA
  • Glen Allen, VA
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