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News Breaks
March 26, 2013
05:52 EDTMGLNMagellan Health price target lowered to $52 from $61 at Deutsche Bank
Deutsche Bank lowered its price target for Magellan Health after the company lost the Arizona Medicaid contract to Maricopa, which has Aetna (AET) as its administrator. Deutsche estimates Maricopa generated 15%-20% of Magellan's 2012 EBITDA, but keeps a Buy rating on the stock.
News For MGLN From The Last 14 Days
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November 20, 2014
08:15 EDTMGLNMagellan Health talks with Louisiana pose 5% earnings risk, says Leerink
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08:10 EDTMGLNMagellan Health says Louisiana looking to reduce term of contract
Magellan Health currently has a contract with the Louisiana Department of Health and Hospitals to manage behavioral health care for Medicaid recipients and other beneficiaries through the Louisiana Behavioral Health Partnership. The current contract, which generates annual revenue of approximately $150M, is currently scheduled to expire on February 28, 2015. The company disclosed last night that it submitted a proposal pursuant to a request for proposals issued by the Louisiana Department for a new expanded contract including the management of behavioral health care and other new services for Medicaid and other beneficiaries with a term ending on December 31, 2016. The Louisiana Department recently notified Magellan that it was the successful bidder and that it intends to recommend that the company be awarded the New contract. At a subsequent meeting, Magellan said the Louisiana Department informed the company that it has decided that the term of the new contract will be for a shortened term expiring on November 30, 2015 instead of December 31, 2016, after which the behavioral health care and other services to Medicaid and other beneficiaries will be transitioned to the general Medicaid managed care plans in Louisiana. Magellan informed the Louisiana Department that it is not practicable for the company to accept a shortened term on the new contract. It added it and the Louisiana Department are "currently discussing reducing the scope of services contained in the RFP to be rendered under the New Contract such that they are comparable to the services rendered by the Company under the Current Contract, with a reduced term ending November 30, 2015." Magellan said it cannot predict whether it will reach an agreement with the Louisiana Department. It added, "Accordingly, there is no assurance that the Company and the Louisiana Department will be able to reach an agreement on the New Contract. In the event agreement is not reached on the New Contract, the Current Contract would expire on February 28, 2015."

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