Magellan Health (MGLN) 10-K26 Feb 152014 FY Annual reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
In Billions, except Share data, unless otherwise specified	Dec. 31, 2014	Feb. 23, 2015	Jun. 30, 2014
Document and Entity Information
Entity Registrant Name	MAGELLAN HEALTH INC
Entity Central Index Key	19411
Document Type	10-K
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$1.80
Entity Common Stock, Shares Outstanding		26,665,409
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current Assets:
Cash and cash equivalents	$255,303	$203,187
Restricted cash	215,325	236,696
Accounts receivable, less allowance for doubtful accounts of $5,447 and $4,047 at December 31, 2013 and 2014, respectively	353,713	238,185
Short-term investments (restricted investments of $117,674 and $133,357 at December 31, 2013 and 2014, respectively)	224,361	175,883
Deferred income taxes	27,226	37,530
Pharmaceutical inventory	39,375	49,609
Other current assets (restricted deposits of $25,009 and $30,620 at December 31, 2013 and 2014, respectively)	52,246	48,268
Total Current Assets	1,167,549	989,358
Property and equipment, net	171,916	172,333
Restricted long-term investments	43,293	32,430
Other long-term assets	11,575	7,197
Goodwill	566,106	488,206
Other intangible assets, net	133,718	69,694
Total Assets	2,094,157	1,759,218
Current Liabilities:
Accounts payable	63,929	42,853
Accrued liabilities	154,931	134,652
Medical claims payable	278,482	228,341
Other medical liabilities	72,719	67,416
Current maturities of long-term debt and capital lease obligations	15,779	3,005
Total Current Liabilities	585,840	476,267
Long-term debt and capital lease obligations	255,742	23,720
Deferred income taxes	30,950	42,046
Tax contingencies	12,320	32,343
Contingent consideration	49,839
Deferred credits and other long-term liabilities	19,951	17,803
Total Liabilities	954,642	592,179
Redeemable Non-Controlling Interest	5,957	10,554
STOCKHOLDERS' EQUITY
Preferred stock, par value $.01 per share Authorized-10,000 shares at December 31, 2013 and December 31, 2014-Issued and outstanding-none
Other Stockholders' Equity:
Additional paid-in capital	1,018,266	922,325
Retained earnings	1,179,897	1,100,493
Accumulated other comprehensive loss	-143	-93
Ordinary common stock in treasury, at cost, 19,735 shares and 23,150 shares at December 31, 2013 and 2014, respectively	-1,064,963	-866,714
Total Stockholders' Equity	1,133,558	1,156,485
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders' Equity	2,094,157	1,759,218
Ordinary common stock
STOCKHOLDERS' EQUITY
Common stock	501	474
Multi-Vote common stock
STOCKHOLDERS' EQUITY
Common stock

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Accounts receivable, allowance for doubtful accounts (in dollars)	$4,047	$5,447
Short-term restricted investments (in dollars)	132,808	117,674
Other current assets, restricted deposits (in dollars)	$30,620	$25,009
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, Authorized shares	10,000	10,000
Preferred stock, Issued shares	0	0
Preferred stock, outstanding shares	0	0
Ordinary common stock in treasury, shares	23,150	19,735
Ordinary common stock
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, Authorized shares	100,000	100,000
Common stock, Issued shares	50,085	47,351
Common stock, outstanding shares	26,935	27,616
Multi-Vote common stock
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, Authorized shares	40,000	40,000
Common stock, Issued shares	0	0
Common stock, outstanding shares	0	0

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Net revenue:
Managed care and other	$753,489	$703,020	$682,274	$829,591	$823,627	$770,113	$746,720	$722,589	$2,968,374		$3,063,049		$2,857,099
PBM and dispensing	228,970	220,150	205,740	136,884	184,583	103,485	96,028	99,172	791,744		483,268		350,298
Total net revenue	982,459	923,170	888,014	966,475	1,008,210	873,598	842,748	821,761	3,760,118		3,546,317		3,207,397
Cost and expenses:
Cost of care	506,090	495,180	481,617	605,708	605,782	564,537	537,630	525,027	2,088,595		2,232,976		2,071,890
Cost of goods sold	212,905	202,180	192,566	125,298	174,411	97,503	90,175	93,512	732,949		455,601		328,414
Direct service costs and other operating expenses (1)	202,814	176,928	179,034	164,722	178,588	156,834	144,497	139,627	723,498	[1]	619,546	[1]	557,512	[1]
Depreciation and amortization	24,405	23,956	22,480	20,229	21,224	17,654	16,946	16,170	91,070		71,994		60,488
Interest expense	1,668	2,879	2,004	836	809	789	792	610	7,387		3,000		2,247
Interest and other income	-474	-241	-275	-311	-983	-291	-358	-353	-1,301		-1,985		-2,019
Total costs and expenses	947,408	900,882	877,426	916,482	979,831	837,026	789,682	774,593	3,642,198		3,381,132		3,018,532
Income before income taxes	35,051	22,288	10,588	49,993	28,379	36,572	53,066	47,168	117,920		165,185		188,865
Provision for income taxes	15,305	-3,490	6,261	25,613	9,888	-10,660	21,586	19,110	43,689		39,924		37,838
Net income	19,746	25,778	4,327	24,380	18,491	47,232	31,480	28,058	74,231		125,261		151,027
Less: net income (loss) attributable to non-controlling interest	-1,819	-1,355	-659	-1,340					-5,173
Net income attributable to Magellan Health, Inc.	$21,565	$27,133	$4,986	$25,720					$79,404		$125,261		$151,027
Net income per common share attributable to Magellan Health, Inc.:
Basic (in dollars per share)	$0.84	$1.02	$0.18	$0.94	$0.68	$1.75	$1.17	$1.03	$2.98		$4.63		$5.51
Diluted (in dollars per share)	$0.82	$1	$0.18	$0.92	$0.67	$1.70	$1.15	$1.01	$2.90		$4.53		$5.42

[1]	Includes stock compensation expense of $17,783, $21,252 and $40,584 for the years ended DecemberB 31, 2012, 2013 and 2014, respectively.

CONSOLIDATED_STATEMENTS_OF_INC1

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CONSOLIDATED STATEMENTS OF INCOME
Stock compensation expense	$14,601	$11,961	$9,550	$4,472	$6,488	$4,524	$4,602	$5,638	$40,584	$21,252	$17,783

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$74,231		$125,261		$151,027
Other comprehensive income (loss):
Unrealized gains (losses) on available-for-sale securities	-50	[1]	-58	[1]	115	[1]
Comprehensive income	74,181		125,203		151,142
Less: comprehensive income (loss) attributable to non-controlling interest	-5,173
Comprehensive income attributable to Magellan Health, Inc.	$79,354		$125,203		$151,142

[1]	Net of income tax provision (benefit) of $73, $(38) and $(33) for the years ended DecemberB 31, 2012, 2013 and 2014, respectively.

CONSOLIDATED_STATEMENTS_OF_COM1

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net of income tax (benefit) provision)	($33)	($38)	$73

CONSOLIDATED_STATEMENTS_OF_CHA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)	Common Stock	Common Stock In Treasury	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
In Thousands, except Share data, unless otherwise specified	Common Stock	Common Stock In Treasury	Additional Paid in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2011	$453	($783,269)	$804,035	$824,205	($150)	$845,274
Balance (in shares) at Dec. 31, 2011	45,285,000	-18,112,000
Increase (Decrease) in Stockholders' Equity
Stock compensation expense			17,945			17,945
Exercise of stock options	5		20,717			20,722
Exercise of stock options (in shares)	531,000
Tax benefit from exercise of stock options and vesting of stock awards			112			112
Issuance of equity	1		-733			-732
Issuance of equity (in shares)	112,000
Repurchase of stock		-23,292				-23,292
Repurchase of stock (in shares)		-463,000
Adjustment to additional paid in capital due to reversal of tax contingency			6,162			6,162
Net income attributable to Magellan Health Inc				151,027		151,027
Other comprehensive (loss) income-other					115	115
Balance at Dec. 31, 2012	459	-806,561	848,238	975,232	-35	1,017,333
Balance (in shares) at Dec. 31, 2012	45,928,000	-18,575,000
Increase (Decrease) in Stockholders' Equity
Stock compensation expense			21,252			21,252
Exercise of stock options	12		47,281			47,293
Exercise of stock options (in shares)	1,139,000
Tax benefit from exercise of stock options and vesting of stock awards			2,297			2,297
Issuance of equity	3		-596			-593
Issuance of equity (in shares)	284,000
Repurchase of stock		-60,153				-60,153
Repurchase of stock (in shares)		-1,160,000
Adjustment to additional paid in capital due to reversal of tax contingency			3,853			3,853
Net income attributable to Magellan Health Inc				125,261		125,261
Other comprehensive (loss) income-other					-58	-58
Balance at Dec. 31, 2013	474	-866,714	922,325	1,100,493	-93	1,156,485
Balance (in shares) at Dec. 31, 2013	47,351,000	-19,735,000
Increase (Decrease) in Stockholders' Equity
Stock compensation expense			40,584			40,584
Exercise of stock options	12		52,982			52,994
Exercise of stock options (in shares)	1,191,000
Tax benefit from exercise of stock options and vesting of stock awards			2,980			2,980
Issuance of equity	15		-369			-354
Issuance of equity (in shares)	1,543,000
Repurchase of stock		-198,249				-198,249
Repurchase of stock (in shares)		-3,415,000
Adjustment to additional paid in capital due to reversal of tax contingency			2,591			2,591
Adjustment to non-controlling interest			-2,827			-2,827
Net income attributable to Magellan Health Inc				79,404		79,404
Other comprehensive (loss) income-other					-50	-50
Balance at Dec. 31, 2014	$501	($1,064,963)	$1,018,266	$1,179,897	($143)	$1,133,558
Balance (in shares) at Dec. 31, 2014	50,085,000	-23,150,000

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net income	$74,231	$125,261	$151,027
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	91,070	71,994	60,488
Non-cash interest expense	3,987	736	728
Non-cash stock compensation expense	40,584	21,252	17,783
Non-cash income tax expense (benefit)	-4,291	-1,212	17,306
Non-cash amortization on investments	5,050	9,107	7,193
Cash flows from changes in assets and liabilities, net of effects from acquisitions of businesses:
Restricted cash	21,371	-2,242	-40,760
Accounts receivable, net	-74,604	-40,804	-16,411
Pharmaceutical inventory	10,234	-3,882	-6,160
Other assets	-7,557	-9,293	414
Accounts payable and accrued liabilities	5,887	3,593	-8,321
Medical claims payable and other medical liabilities	55,670	17,866	31,292
Tax contingencies	-14,955	-22,960	-35,376
Deferred credits and other long-term liabilities	4,045	10,988	1,901
Other	322	2,757	189
Net cash provided by operating activities	211,044	183,161	181,293
Cash flows from investing activities:
Capital expenditures	-62,337	-64,542	-69,549
Acquisitions and investments in businesses, net of cash acquired	-128,277	-107,541
Purchase of investments	-340,961	-323,253	-321,541
Maturity of investments	276,446	339,428	281,748
Other			-1,225
Net cash used in investing activities	-255,129	-155,908	-110,567
Cash flows from financing activities:
Proceeds from issuance of debt	250,000
Payments to acquire treasury stock	-197,533	-60,677	-21,868
Proceeds from exercise of stock options and warrants	52,994	47,529	20,486
Tax benefit from exercise of stock options and vesting of stock awards	3,218	3,212	990
Payments on long-term debt and capital lease obligations	-8,045	-3,001
Other	-4,433	-593	-732
Net cash (used in) provided by financing activities	96,201	-13,530	-1,124
Net increase in cash and cash equivalents	52,116	13,723	69,602
Cash and cash equivalents at beginning of period	203,187	189,464	119,862
Cash and cash equivalents at end of period	$255,303	$203,187	$189,464

General

General	12 Months Ended
General	Dec. 31, 2014
General
General
	1. General
	Basis of Presentation
	The consolidated financial statements of Magellan Health, Inc., a Delaware corporation ("Magellan"), include Magellan and its subsidiaries (together with Magellan, the "Company"). All significant intercompany accounts and transactions have been eliminated in consolidation.
	Business Overview
	The Company is engaged in the healthcare management business, and is focused on meeting needs in areas of healthcare that are fast growing, highly complex and high cost, with an emphasis on special population management. The Company provides services to health plans and other managed care organizations ("MCOs"), employers, labor unions, various military and governmental agencies, third party administrators, consultants and brokers. The Company's business is divided into the following five segments, based on the services it provides and/or the customers that it serves, as described below.
	Managed Healthcare
	Two of the Company's segments are in the managed healthcare business. This line of business reflects the Company's: (i) management of behavioral healthcare services, and (ii) the integrated management of physical, behavioral and pharmaceutical healthcare for special populations, delivered through Magellan Complete Care ("MCC"). The Company's coordination and management of physical and behavioral healthcare includes services provided through its comprehensive network of medical and behavioral health professionals, clinics, hospitals and ancillary service providers. This network of credentialed and privileged providers is integrated with clinical and quality improvement programs to enhance the healthcare experience for individuals in need of care, while at the same time managing the cost of these services for our customers. The treatment services provided through the Company's provider network include outpatient programs, intermediate care programs, inpatient treatment and crisis intervention services. The Company generally does not directly provide or own any provider of treatment services, although it does employ licensed behavioral health counselors to deliver non-medical counseling under certain government contracts.
	The Company's integrated management of physical and behavioral healthcare includes full service health plans which provide for the holistic management of special populations. These special populations include individuals with serious mental illness, dual eligibles, those eligible for long term care and other populations with unique and often complex healthcare needs.
	The Company provides its management services primarily through: (i) risk-based products, where the Company assumes all or a substantial portion of the responsibility for the cost of providing treatment services in exchange for a fixed per member per month fee, (ii) administrative services only ("ASO") products, where the Company provides services such as utilization review, claims administration and/or provider network management, but does not assume responsibility for the cost of the treatment services, and (iii) employee assistance programs ("EAPs") where the Company provides short-term outpatient behavioral counseling services.
	The managed healthcare business includes the following two segments, which are differentiated based on the services provided and/or the customers served:
	Commercial. The Managed Healthcare Commercial segment ("Commercial") generally reflects managed behavioral healthcare services and EAP services provided under contracts with health plans, insurance companies and MCOs for some or all of their commercial, Medicaid and Medicare members, as well as with employers, including corporations, governmental agencies, military and labor unions. Commercial's contracts encompass risk-based, ASO and EAP arrangements.
	Public Sector. The Managed Healthcare Public Sector segment ("Public Sector") generally reflects: (i) the management of behavioral health services provided to recipients under Medicaid and other state sponsored programs under contracts with state and local governmental agencies, and (ii) the integrated management of physical, behavioral and pharmaceutical care for special populations covered under Medicaid and other government sponsored programs. Public Sector contracts encompass either risk-based or ASO arrangements.
	Specialty Solutions
	The Specialty Solutions segment ("Specialty Solutions") generally reflects the management of the delivery of diagnostic imaging (radiology benefits management or "RBM") and a variety of other specialty areas such as radiation oncology, obstetrical ultrasound, cardiology and musculoskeletal management to ensure that such services are clinically appropriate and cost effective. The Company's Specialty Solutions services are currently provided under contracts with health plans and insurance companies for some or all of their commercial, Medicaid and Medicare members. The Company also contracts with state and local governmental agencies for the provision of such services to Medicaid recipients. The Company offers its Specialty Solutions services through risk-based contracts, where the Company assumes all or a substantial portion of the responsibility for the cost of providing services, and through ASO contracts, where the Company provides services such as utilization review and claims administration, but does not assume responsibility for the cost of the services.
	Pharmacy Management
	The Pharmacy Management segment ("Pharmacy Management") comprises products and solutions that provide clinical and financial management of drugs paid under medical and pharmacy benefit programs. Pharmacy Management's services include (i) traditional pharmacy benefit management ("PBM") services; (ii) pharmacy benefit administration ("PBA") for state Medicaid and other government sponsored programs; (iii) specialty pharmaceutical dispensing operations, contracting and formulary optimization programs; (iv) medical pharmacy management programs; and (v) programs for the integrated management of specialty drugs across both the medical and pharmacy benefit that treat complex conditions, regardless of site of service, method of delivery, or benefit reimbursement. In addition, Pharmacy Management has subcontract arrangements to provide PBM services for certain Public Sector customers.
	The Company's Pharmacy Management programs are provided under contracts with health plans, employers, Medicaid MCOs, state Medicaid programs, and other government agencies, and encompass risk-based and fee-for-service ("FFS") arrangements.
	Corporate
	This segment of the Company is comprised primarily of operational support functions such as sales and marketing and information technology, as well as corporate support functions such as executive, finance, human resources and legal.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2014
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
	2. Summary of Significant Accounting Policies
	Recent Accounting Pronouncements
	In July 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-06, "Other Expenses (Topic 720): Fees Paid to the Federal Government by Health Insurers (a consensus of the FASB Emerging Issues Task Force)" ("ASU 2011-06"), which addresses how fees mandated by the Patient Protection and the Affordable Care Act ("ACA"), as amended by the Health Care and Education Reconciliation Act of 2010 (collectively, the "Health Reform Law"), should be recognized and classified in the income statements of health insurers. The Health Reform Law imposes a mandatory annual fee on health insurers for each calendar year beginning on or after January 1, 2014. ASU 2011-06 stipulates that the liability incurred for that fee be amortized to expense over the calendar year in which it is payable. This ASU is effective for calendar years beginning after December 31, 2013, when the fee initially became effective. The Company has obtained rate adjustments which the Company expects will cover the direct costs of these fees and the impact from non-deductibility of such fees for federal and state income tax purposes. To the extent the Company has a state public sector customer that does not renew, there may be some impact due to taxes paid where the timing and amount of recoupment of these additional costs is uncertain. In the event the Company is unable to obtain rate adjustments to cover the financial impact of the annual fee, the fee may have a material impact on the Company. For 2014, the ACA fee was $21.4 million which has been paid, and which is included in direct service costs and other operating expenses in the consolidated statements of income. The Company has recorded revenues of $36.5 million for 2014, associated with the accrual for the reimbursement of the economic impact of the ACA fees from its customers.
	In July 2013, the FASB issued ASU No. 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Carryforward Exists" ("ASU 2013-11"). ASU 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions, in which case such an unrecognized tax benefit should be presented in the financial statements as a liability. The amendments in this ASU do not require new recurring disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2013 and were adopted by the Company during the quarter ended March 31, 2014. The effect of the guidance is immaterial to the Company's consolidated results of operations, financial position, and cash flows.
	In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"), which is a new comprehensive revenue recognition standard that will supersede virtually all existing revenue guidance under GAAP. This ASU is effective for calendar years beginning after December 15, 2016. The Company is currently assessing the potential impact this ASU will have on the Company's consolidated results of operations, financial position, and cash flows.
	In June 2014, the FASB issued ASU No. 2014-12, "Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period" ("ASU 2014-12"), which revises the accounting treatment for stock compensation tied to performance targets. This ASU is effective for calendar years beginning after December 15, 2015. The guidance is not expected to materially impact the Company's consolidated results of operations, financial position, or cash flows.
	In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40)" ("ASU 2014-15"), which provides guidance in GAAP about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This amendment should reduce diversity in the timing and content of footnote disclosures. This ASU is effective for the annual period ending after December 15, 2016 and for annual and interim periods thereafter. The guidance is not expected to materially impact the Company's consolidated results of operations, financial position, or cash flows.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates of the Company include, among other things, accounts receivable realization, valuation allowances for deferred tax assets, valuation of goodwill and intangible assets, medical claims payable, other medical liabilities, contingent consideration, stock compensation assumptions, tax contingencies and legal liabilities. Actual results could differ from those estimates.
	Managed Care and Other Revenue
	Managed Care Revenue. Managed care revenue, inclusive of revenue from the Company's risk, EAP and ASO contracts, is recognized over the applicable coverage period on a per member basis for covered members. The Company is paid a per member fee for all enrolled members, and this fee is recorded as revenue in the month in which members are entitled to service. The Company adjusts its revenue for retroactive membership terminations, additions and other changes, when such adjustments are identified, with the exception of retroactivity that can be reasonably estimated. The impact of retroactive rate amendments is generally recorded in the accounting period that terms to the amendment are finalized, and that the amendment is executed. Any fees paid prior to the month of service are recorded as deferred revenue. Managed care revenues approximated $2.5 billion, $2.7 billion and $2.6 billion for the years ended December 31, 2012, 2013 and 2014, respectively.
	Fee-For-Service and Cost-Plus Contracts. The Company has certain fee-for-service contracts, including cost-plus contracts, with customers under which the Company recognizes revenue as services are performed and as costs are incurred. This includes revenues received in relation to ACA fees billed on a cost reimbursement basis. Revenues from these contracts approximated $151.4 million, $215.1 million and $290.9 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	Block Grant Revenues. The Maricopa Contract (as defined below) was partially funded by federal, state and county block grant money, which represents annual appropriations. The Company recognizes revenue from block grant activity ratably over the period to which the block grant funding applies. Block grant revenues were approximately $124.8 million, $131.5 million and $33.3 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	Performance-Based Revenue. The Company has the ability to earn performance-based revenue under certain risk and non-risk contracts. Performance-based revenue generally is based on either the ability of the Company to manage care for its clients below specified targets, or on other operating metrics. For each such contract, the Company estimates and records performance-based revenue after considering the relevant contractual terms and the data available for the performance-based revenue calculation. Pro-rata performance-based revenue may be recognized on an interim basis pursuant to the rights and obligations of each party upon termination of the contracts. Performance-based revenues were $25.4 million, $14.0 million and $12.0 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	Rebate Revenue. The Company administers a rebate program for certain clients through which the Company coordinates the achievement, calculation and collection of rebates and administrative fees from pharmaceutical manufacturers on behalf of clients. Each period, the Company estimates the total rebates earned based on actual volumes of pharmaceutical purchases by the Company's clients, as well as historical and/or anticipated sharing percentages. The Company earns fees based upon the volume of rebates generated for its clients. The Company does not record as rebate revenue any rebates that are passed through to its clients. Total rebate revenues for the years ended December 31, 2012, 2013 and 2014 were $40.2 million, $34.8 million and $43.6 million, respectively.
	In relation to the Company's PBM business, the Company administers rebate programs through which it receives rebates from pharmaceutical manufacturers that are shared with its customers. The Company recognizes rebates when the Company is entitled to them and when the amounts of the rebates are determinable. The amount recorded for rebates earned by the Company from the pharmaceutical manufacturers are recorded as a reduction of cost of goods sold.
	PBM and Dispensing Revenue
	Pharmacy Benefit Management Revenue. The Company recognizes PBM revenue, which consists of a negotiated prescription price (ingredient cost plus dispensing fee), co-payments collected by the pharmacy and any associated administrative fees, when claims are adjudicated. The Company recognizes PBM revenue on a gross basis (i.e. including drug costs and co-payments) as it is acting as the principal in the arrangement and is contractually obligated to its clients and network pharmacies, which is a primary indicator of gross reporting. In addition, the Company is solely responsible for the claims adjudication process, negotiating the prescription price for the pharmacy, collection of payments from the client for drugs dispensed by the pharmacy, and managing the total prescription drug relationship with the client's members. If the Company enters into a contract where it is only an administrator, and does not assume any of the risks previously noted, revenue will be recognized on a net basis. Prior to the year ended December 31, 2013 the Company had no PBM business. PBM revenues were $106.7 million and $575.7 million for the years ended December 31, 2013 and 2014, respectively.
	Dispensing Revenue. The Company recognizes dispensing revenue, which includes the co-payments received from members of the health plans the Company serves, when the specialty pharmaceutical drugs are shipped. At the time of shipment, the earnings process is complete; the obligation of the Company's customer to pay for the specialty pharmaceutical drugs is fixed, and, due to the nature of the product, the member may neither return the specialty pharmaceutical drugs nor receive a refund. Revenues from the dispensing of specialty pharmaceutical drugs on behalf of health plans were $350.3 million, $376.6 million and $216.0 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	Significant Customers
	Consolidated Company
	Through March 31, 2014, the Company provided behavioral healthcare management and other related services to approximately 680,000 members in Maricopa County, Arizona as the Regional Behavioral Health Authority ("RBHA") for GSA6 ("Maricopa County") pursuant to a contract with the State of Arizona (the "Maricopa Contract"). The Maricopa Contract was for the management of the publicly funded behavioral health system that delivered mental health, substance abuse and crisis services for adults, youth, and children. The Maricopa Contract terminated on March 31, 2014. The Maricopa Contract generated net revenues of $758.3 million, $755.0 million and $216.6 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	The Company provides behavioral healthcare management and other related services to members in the state of Iowa pursuant to contracts with the State of Iowa (the "Iowa Contracts"). The Iowa Contracts generated net revenues that exceeded, in the aggregate, ten percent of net revenues for the consolidated Company for the year ended December 31, 2014. The Company currently has two contracts; the Iowa Medicaid Contract and Iowa Medicaid Integrated Health Home Provider Agreement ("IHH Agreement"). Under the Iowa Medicaid Contract, the Company is responsible for providing managed mental health and substance abuse treatment to enrollees under a Medicaid 1915(b) waiver, as well as substance abuse treatment services plan funded by federal block grant and state appropriations under the authority of the Iowa Department of Public Health. The Iowa Health and Wellness Plan for members who qualify as an "exempt individual", as defined in 441 of the Iowa Administrative Code, were also added to the contract on January 1, 2014. The latest Iowa Medicaid Contract began on January 1, 2010 and extends through June 30, 2015 unless sooner terminated by the parties. The Iowa Department of Human Services and the Iowa Department of Public Health has the right to terminate the Iowa Medicaid Contract upon thirty days notice for any reason or no reason at all. We expect that the Iowa Medicaid Contract will be extended to coincide with the start date of new Iowa High Quality Healthcare Initiative, as discussed below, however there can be no assurance that the Iowa Medicaid Contract will be extended. Under the IHH Agreement, the Company establishes a health home for individuals identified with serious and persistent mental illness through enrolled provider organizations capable of providing enhanced care. The IHH Agreement began on July 1, 2013 and extends through June 30, 2016 unless sooner terminated by either party with 60 days notice for any reason or no reason at all. The IHH program is part of the new Iowa High Quality Healthcare Initiative and we expect that the end of the IHH agreement will coincide with the start date of the new initiative. The Iowa Contracts generated net revenues of $240.2 million, $321.1 million and $465.0 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	On February 16, 2015 the Iowa Department of Human Services (the "Agency") released the Iowa High Quality Healthcare Initiative Request for Proposal ("RFP"). The Agency intends to contract on a statewide basis with two to four successful bidders with a demonstrated capacity to coordinate care and provide quality outcomes for the Medicaid and Children's Health Insurance Program ("CHIP") populations. The program will enroll the majority of the Iowa Medicaid and CHIP populations and will also provide services for individuals qualifying for Iowa Department of Public Health ("IDPH") funded substance abuse services. The anticipated start of the contract is January 1, 2016 for an initial period of three years and the ability for the Agency to extend the contract for two additional two year terms. The RFP includes the services provided by the Company's current Iowa Contracts. The Company intends to submit a proposal on this RFP. There can be no assurance that the Company will be awarded a contract pursuant to the RFP, or that the terms of any contract awarded pursuant to the RFP will be similar to the current Iowa Contracts.
	By Segment
	In addition to the Maricopa Contract and the Iowa Contracts previously discussed, the following customers generated in excess of ten percent of net revenues for the respective segment for the years ended December 31, 2012, 2013 and 2014 (in thousands):

	Segment		Term Date		2012			2013			2014
	Commercial
	Customer A		June 30, 2014(1)			192,415			207,080			110,153
	Customer A		June 30, 2014(1)		$	192,415		$	207,080		$	110,153
	Customer B		December 31, 2019			134,885			141,444			184,981
	Customer C		August 14, 2017			12,722	*		70,390	*		107,247
	Customer D		December 14, 2013(1)			118,351			74,203	*		—
	Customer E		December 31, 2017			67,959	*		71,085	*		67,426
	Public Sector
	Public Sector
	Customer F		December 31, 2018(2)			133,864			128,607			253,661
	Customer F		December 31, 2018(2)			133,864	*		128,607	*		253,661
	Specialty Solutions
	Specialty Solutions
	Customer G		December 31, 2017(3)			117,739			130,895			146,930
	Customer H		June 30, 2016(4)			60,094			55,078			33,492	*
	Customer I		June 30, 2017			57,455			61,838			76,580
	Customer A		November 30, 2016			1,339	*		6,399	*		54,413
	Customer J		January 31, 2016			38,366			47,311			52,310
	Pharmacy Management
	Pharmacy Management
	Customer K		April 4, 2015 to December 31, 2015(5)			129,209			133,724			123,812
	Customer L		December 31, 2013(6)			60,350			59,125	*		14,312	*
	Customer E		December 31, 2013(6)			73,785			92,647			2,612	*
	Customer M		March 31, 2014(1)(7)			69,090			66,153	*		18,055	*
	Customer N		December 16, 2016			—			—			171,936


	*	Revenue amount did not exceed ten percent of net revenues for the respective segment for the year presented. Amount is shown for comparative purposes only.
	-1	The contract has terminated.
	-2	The Company had behavioral healthcare contracts with various areas in the State of Florida (the "Florida Areas") which were part of the Florida Medicaid program. The State of Florida implemented a new system of mandated managed care through which Medicaid enrollees will receive integrated healthcare services, and has phased out the behavioral healthcare programs under which the Florida Areas' contracts operated. The Company has a contract with the State of Florida to provide integrated healthcare services under the new program.
	-3	On December 31, 2014, this contract was amended and extended through December 31, 2017. Historically the Company provided services on a risk basis. Under the amended contract, the funding arrangement will be a combination of risk and ASO based services.
	-4	The contract transitioned from risk to ASO based services effective July 1, 2014.
	-5	The customer has more than one contract. The individual contracts are scheduled to terminate at various points during the time period indicated above.
	-6	The contract has terminated, however, the Company continues to provide services as the contract is transitioned to the new vendor.
	-7	This customer represented a subcontract with a Public Sector customer and was eliminated in consolidation.
Concentration of Business
The Company also has a significant concentration of business with various counties in the State of Pennsylvania (the "Pennsylvania Counties") which are part of the Pennsylvania Medicaid program. Net revenues from the Pennsylvania Counties in the aggregate totaled $354.1 million, $359.0 million and $369.9 million for the years ended December 31, 2012, 2013 and 2014, respectively.
The Company's contracts with customers typically have terms of one to three years, and in certain cases contain renewal provisions (at the customer's option) for successive terms of between one and two years (unless terminated earlier). Substantially all of these contracts may be immediately terminated with cause and many of the Company's contracts are terminable without cause by the customer or the Company either upon the giving of requisite notice and the passage of a specified period of time (typically between 60 and 180 days) or upon the occurrence of other specified events. In addition, the Company's contracts with federal, state and local governmental agencies generally are conditioned on legislative appropriations. These contracts generally can be terminated or modified by the customer if such appropriations are not made.
Income Taxes
The Company files a consolidated federal income tax return for the Company and its eighty-percent or more owned subsidiaries, and a consolidated federal income tax return for AlphaCare of New York, Inc. ("AlphaCare") and its parent, AlphaCare Holdings, Inc. ("AlphaCare Holdings"). The Company and its subsidiaries also file income tax returns in various state and local jurisdictions.
The Company estimates income taxes for each of the jurisdictions in which it operates. This process involves determining both permanent and temporary differences resulting from differing treatment for tax and book purposes. Deferred tax assets and/or liabilities are determined by multiplying the temporary differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled. The Company establishes valuation allowances against deferred tax assets if it is more likely than not that the deferred tax asset will not be realized. The need for a valuation allowance is determined based on the evaluation of various factors, including expectations of future earnings and management's judgment. The effect of a change in tax rates on deferred taxes is recognized in income in the period that includes the enactment date.
Reversals of both valuation allowances and unrecognized tax benefits are recorded in the period they occur, typically as reductions to income tax expense. However, reversals of unrecognized tax benefits related to deductions for stock compensation in excess of the related book expense are recorded as increases in additional paid-in capital. To the extent reversals of unrecognized tax benefits cannot be specifically traced to these excess deductions due to complexities in the tax law, the Company records the tax benefit for such reversals to additional paid-in-capital on a pro-rata basis.
The Company recognizes interim period income taxes by estimating an annual effective tax rate and applying it to year-to-date results. The estimated annual effective tax rate is periodically updated throughout the year based on actual results to date and an updated projection of full year income. Although the effective tax rate approach is generally used for interim periods, taxes on significant, unusual and infrequent items are recognized at the statutory tax rate entirely in the period the amounts are realized.
Cash and Cash Equivalents
Cash equivalents are short-term, highly liquid interest-bearing investments with maturity dates of three months or less when purchased, consisting primarily of money market instruments. At December 31, 2014, the Company's excess capital and undistributed earnings for the Company's regulated subsidiaries of $65.5 million are included in cash and cash equivalents.
Restricted Assets
The Company has certain assets which are considered restricted for: (i) the payment of claims under the terms of certain managed care contracts; (ii) regulatory purposes related to the payment of claims in certain jurisdictions; and (iii) the maintenance of minimum required tangible net equity levels for certain of the Company's subsidiaries. Significant restricted assets of the Company as of December 31, 2013 and 2014 were as follows (in thousands):

		2013			2014
Restricted cash		$	236,696		$	215,325
Restricted short-term investments			117,674			132,808
Restricted deposits (included in other current assets)			25,009			30,620
Restricted long-term investments			32,430			43,293

Total		$	411,809		$	422,046


Fair Value Measurements
The Company currently does not have non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis. Financial assets and liabilities are to be measured using inputs from the three levels of the fair value hierarchy, which are as follows:
Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
Level 3—Unobservable inputs that reflect the Company's assumptions about the assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including the Company's data.
In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company's financial assets and liabilities that are required to be measured at fair value as of December 31, 2013 and 2014 (in thousands):

		Fair Value Measurements
		at December 31, 2013
		Level 1			Level 2			Level 3			Total
Assets
Cash and Cash Equivalents(1)		$	—		$	101,028		$	—		$	101,028
Restricted Cash(2)			—			128,318			—			128,318
Investments:
Investments:
U.S. Government and agency securities			1,129			—			—			1,129
Obligations of government-sponsored enterprises(3)			—			8,440			—			8,440
Corporate debt securities			—			198,594			—			198,594
Certificates of deposit			—			150			—			150

Total assets held at fair value		$	1,129		$	436,530		$	—		$	437,659




		Fair Value Measurements
		at December 31, 2014
		Level 1			Level 2			Level 3			Total
Assets
Cash and Cash Equivalents(4)		$	—		$	139,280		$	—		$	139,280
Restricted Cash(5)			—			65,992			—			65,992
Investments:
Investments:
U.S. Government and agency securities			4,303			—			—			4,303
Obligations of government-sponsored enterprises(3)			—			15,315			—			15,315
Corporate debt securities			—			246,886			—			246,886
Certificates of deposit			—			1,150			—			1,150

Total assets held at fair value		$	4,303		$	468,623		$	—		$	472,926


Liabilities
Contingent consideration		$	—		$	—		$	58,153		$	58,153

Total liabilities held at fair value		$	—		$	—		$	58,153		$	58,153




-1	Excludes $102.2 million of cash held in bank accounts by the Company.
-2	Excludes $108.4 million of restricted cash held in bank accounts by the Company.
-3	Includes investments in notes issued by the Federal Home Loan Bank.
-4	Excludes $116.0 million of cash held in bank accounts by the Company.
-5	Excludes $149.3 million of restricted cash held in bank accounts by the Company.
For the years ended December 31, 2013 and 2014, the Company did not transfer any assets between fair value measurement levels.
The carrying values of financial instruments, including accounts receivable and accounts payable, approximate their fair values due to their short-term maturities. The estimated fair value of the Company's term loan of $246.9 million as of December 31, 2014 was based on current interest rates for similar types of borrowings and is in Level 2 of the fair value hierarchy. The estimated fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future.
All of the Company's investments are classified as "available-for-sale" and are carried at fair value.
The contingent consideration liability reflects the fair value of potential future payments related to the CDMI, LLC ("CDMI") and Cobalt Therapeutics, LLC ("Cobalt") acquisitions. The CDMI purchase agreement provides for potential contingent payments up to a maximum aggregate amount of $165.0 million. The potential future payments are contingent upon CDMI meeting certain client retention, client conversion, and gross profit milestones through December 31, 2016. The Cobalt purchase agreement provides for potential contingent payments up to a maximum aggregate amount of $6.0 million. The potential future payments are contingent upon engagement of new members and new contract execution through June 30, 2017.
The fair value of contingent consideration is determined based on probabilities of payment, projected payment dates, discount rates, and projected revenues, gross profits, client base, member engagement, and new contract execution. The projected revenues, gross profits, client base, member engagement, and new contract execution are derived from the Company's latest internal operational forecasts. The Company used a probability weighted discounted cash flow method to arrive at the fair value of the contingent consideration. Changes in the operational forecasts, probabilities of payment, discount rates, or projected payment dates may result in a change in the fair value measurement. Any changes in the fair value measurement are reflected as income or expense in the consolidated statements of income. As the fair value measurement for the contingent consideration is based on inputs not observed in the market, these measurements are classified as Level 3 measurements as defined by fair value measurement guidance.
The following unobservable inputs were used in the fair value measurement of contingent consideration: (i) discount rate of 14.5 percent; (ii) probabilities of payment of approximately zero to 85 percent for CDMI and 5 to 70 percent for Cobalt; and (iii) projected payment dates of 2015 to 2017. As of the acquisition date, the Company estimated undiscounted future contingent payments of $61.7 million and $4.2 million for CDMI and Cobalt, respectively. As of December 31, 2014, the Company estimated undiscounted future contingent payments of $65.7 million and $4.2 million for CDMI and Cobalt, respectively. The increase for CDMI is mainly a result of changes in operational forecasts and probabilities of payment. As of December 31, 2014, the fair value of the short term and long term contingent consideration was $8.3 million and $49.8 million, respectively, and is included in accrued liabilities and contingent consideration, respectively, in the consolidated balance sheet. The change in the fair value of the contingent consideration was $9.3 million for the year ended December 31, 2014, $6.2 million and $3.1 million of which was recorded in the consolidated statements of income as direct service costs and other operating expenses, and as interest expense, respectively. The increase was mainly a result of the changes in the present value and estimated undiscounted liability, as noted above.
The following table summarizes the Company's liability for contingent consideration (in thousands):

		December 31,
		2014
Balance as of beginning of period		$	—
Acquisition of CDMI			45,778
Acquisition of Cobalt			3,071
Changes in fair value			9,304

Balance as of end of period		$	58,153


Investments
All of the Company's investments are classified as "available-for-sale" and are carried at fair value. Securities which have been classified as Level 1 are measured using quoted market prices while those which have been classified as Level 2 are measured using quoted prices for identical assets and liabilities in markets that are not active. The Company's policy is to classify all investments with contractual maturities within one year as current. Investment income is recognized when earned and reported net of investment expenses. Net unrealized holding gains or losses are excluded from earnings and are reported, net of tax, as "accumulated other comprehensive income (loss)" in the accompanying consolidated balance sheets and consolidated statements of comprehensive income until realized, unless the losses are deemed to be other-than-temporary. Realized gains or losses, including any provision for other-than-temporary declines in value, are included in the consolidated statements of income.
If a debt security is in an unrealized loss position and the Company has the intent to sell the debt security, or it is more likely than not that the Company will have to sell the debt security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to other-than-temporary impairment losses recognized in income in the consolidated statements of income. For impaired debt securities that the Company does not intend to sell or it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in other-than-temporary impairment losses recognized in income in the consolidated statements of income and the non-credit component of the other-than-temporary impairment is recognized in other comprehensive income.
The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the debt security. The net present value is calculated by discounting the best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Cash flow estimates are driven by assumptions regarding probability of default, including changes in credit ratings, and estimates regarding timing and amount of recoveries associated with a default. Furthermore, unrealized losses entirely caused by non-credit related factors related to debt securities for which the Company expects to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive income.
As of December 31, 2013 and 2014, there were no unrealized losses that the Company believed to be other-than-temporary. No realized gains or losses were recorded for the years ended December 31, 2012, 2013, or 2014. The following is a summary of short-term and long-term investments at December 31, 2013 and 2014 (in thousands):

		December 31, 2013
		Amortized			Gross			Gross			Estimated
		Cost			Unrealized			Unrealized			Fair Value
					Gains			Losses
U.S. Government and agency securities		$	1,129		$	—		$	—		$	1,129
Obligations of government-sponsored enterprises(1)			8,441			2			(3	)		8,440
Corporate debt securities			198,748			18			(172	)		198,594
Certificates of deposit			150			—			—			150

Total investments at December 31, 2013		$	208,468		$	20		$	(175	)	$	208,313



		December 31, 2014
		Amortized			Gross			Gross			Estimated
		Cost			Unrealized			Unrealized			Fair Value
					Gains			Losses
U.S. Government and agency securities		$	4,305		$	—		$	(2	)	$	4,303
Obligations of government-sponsored enterprises(1)			15,318			1			(4	)		15,315
Corporate debt securities			247,118			8			(240	)		246,886
Certificates of deposit			1,150			—			—			1,150

Total investments at December 31, 2014		$	267,891		$	9		$	(246	)	$	267,654




-1	Includes investments in notes issued by the Federal Home Loan Bank.
The maturity dates of the Company's investments as of December 31, 2014 are summarized below (in thousands):

		Amortized			Estimated
		Cost			Fair Value
2015		$	224,509		$	224,361
2016			43,382			43,293

Total investments at December 31, 2014		$	267,891		$	267,654


Accounts Receivable
The Company's accounts receivable consists of amounts due from customers throughout the United States. Collateral is generally not required. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. Management believes the allowance for doubtful accounts is adequate to provide for normal credit losses.
Concentration of Credit Risk
Accounts receivable subjects the Company to a concentration of credit risk with third party payors that include health insurance companies, managed healthcare organizations, healthcare providers and governmental entities.
The Company maintains cash and cash equivalents balances at financial institutions and are insured by the Federal Deposit Insurance Corporation ("FDIC"). At times, balances in certain bank accounts may exceed the FDIC insured limits.
Pharmaceutical Inventory
Pharmaceutical inventory consists solely of finished goods (primarily prescription drugs) and are stated at the lower of first-in first-out cost or market.
Long-lived Assets
Long-lived assets, including property and equipment and intangible assets to be held and used, are currently reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount should be addressed. Impairment is determined by comparing the carrying value of these long-lived assets to management's best estimate of the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The cash flow projections used to make this assessment are consistent with the cash flow projections that management uses internally in making key decisions. In the event an impairment exists, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the asset, which is generally determined by using quoted market prices or the discounted present value of expected future cash flows.
Property and Equipment
Property and equipment is stated at cost, except for assets that have been impaired, for which the carrying amount has been reduced to estimated fair value. Expenditures for renewals and improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. The Company capitalizes costs incurred to develop internal-use software during the application development stage. Capitalization of software development costs occurs after the preliminary project stage is complete, management authorizes the project, and it is probable that the project will be completed and the software will be used for the function intended. Amortization of capital lease assets is included in depreciation expense and is included in accumulated depreciation as reflected in the table below. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets, which is generally two to ten years for building improvements (or the lease term, if shorter), three to fifteen years for equipment and three to five years for capitalized internal-use software. The net capitalized internal use software as of December 31, 2013 and 2014 was $78.8 million and $85.6 million, respectively. Depreciation expense was $50.8 million, $61.4 million and $68.3 million for the years ended December 31, 2012, 2013 and 2014, respectively. Included in depreciation expense for the years ended December 31, 2012, 2013 and 2014 was $28.8 million, $34.8 million and $40.9 million, respectively, related to capitalized internal use software.
Property and equipment, net, consisted of the following at December 31, 2013 and 2014 (in thousands):

		2013			2014
Building improvements		$	12,074		$	13,416
Equipment			180,540			185,391
Capital leases—property			26,945			26,945
Capital leases—equipment			2,794			7,883
Capitalized internal-use software			304,146			351,978

			526,499			585,613
Accumulated depreciation			(354,166	)		(413,697	)

Property and equipment, net		$	172,333		$	171,916


Goodwill
The Company is required to test its goodwill for impairment on at least an annual basis. The Company has selected October 1 as the date of its annual impairment test. The goodwill impairment test is a two-step process that requires management to make judgments in determining what assumptions to use in the calculation. The first step of the process consists of estimating the fair value of each reporting unit with goodwill based on various valuation techniques, with the primary technique being a discounted cash flow analysis, which requires the input of various assumptions with respect to revenues, operating margins, growth rates and discount rates. The estimated fair value for each reporting unit is compared to the carrying value of the reporting unit, which includes goodwill. If the estimated fair value is less than the carrying value, a second step is performed to compute the amount of the impairment by determining an "implied fair value" of goodwill. The determination of a reporting unit's "implied fair value" of goodwill requires the Company to allocate the estimated fair value of the reporting unit to the assets and liabilities of the reporting unit. Any unallocated fair value represents the "implied fair value" of goodwill, which is compared to its corresponding carrying value.
Goodwill is tested for impairment at a level referred to as a reporting unit, with the Company's reporting units with goodwill as of December 31, 2014 comprised of Health Plan, Specialty Solutions, Pharmacy Management, and Magellan Complete Care.
The fair value of the Health Plan (a component of the Commercial segment), Specialty Solutions and Magellan Complete Care (a component of the Public Sector segment) reporting units were determined using a discounted cash flow method. This method involves estimating the present value of estimated future cash flows utilizing a risk adjusted discount rate. Key assumptions for this method include cash flow projections, terminal growth rates and discount rates.
The fair value of the Pharmacy Management reporting unit was determined using discounted cash flow, guideline company and similar transaction methods. Key assumptions for the discounted cash flow method are consistent with those described above. For the guideline company method, revenue and earnings before interest, taxes, depreciation, and amortization ("EBITDA") multiples for guideline companies were applied to the reporting unit's pro forma revenue and EDITDA for 2014, which represents actual results for the nine-month period ended September 30, 2014 and projected results for the three-month period ended December 31, 2014, and to the reporting unit's projected revenue and EBITDA for 2015. For the similar transaction method, revenue and EBITDA multiples based on merger and acquisition transactions for similar companies were applied to the reporting unit's pro forma revenue and EBITDA for 2014, which represents actual results for the nine-month period ended September 30, 2014 and projected results for the three-month period ended December 31, 2014. The weighting applied to the fair values determined using the discounted cash flow, guideline company and similar transaction methods to determine an overall fair value for the Pharmacy Management reporting unit was 75 percent, 22.5 percent and 2.5 percent, respectively. The weighting of each of the methods described above was based on the relevance of the approach. A change in the weighting would not change the outcome of the first step of the impairment test.
As a result of the first step of the 2014 annual goodwill impairment analysis, the fair value of each reporting unit with goodwill exceeded its carrying value with a range of approximately 40 percent to 65 percent. Therefore, the second step was not necessary.
Goodwill for each of the Company's reporting units with goodwill at December 31, 2013 and 2014 were as follows (in thousands):

		2013			2014
Health Plan		$	120,485		$	129,042
Specialty Solutions			104,549			104,549
Pharmacy Management			242,290			311,636
Magellan Complete Care			20,882			20,879

Total		$	488,206		$	566,106


The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2014 are reflected in the table below (in thousands):

		2013			2014
Balance as of beginning of period		$	426,939		$	488,206
Acquisition of Partners Rx(1)			40,385			254
Acquisition of AlphaCare Holdings(1)			20,882			(3	)
Acquisition of CDMI			—			69,092
Acquisition of Cobalt			—			8,557

Balance as of end of period		$	488,206		$	566,106


Intangible Assets
The following is a summary of intangible assets at December 31, 2013 and 2014, and the estimated useful lives for such assets (in thousands):

		December 31, 2013
Asset		Estimated		Gross			Accumulated			Net
		Useful Life		Carrying			Amortization			Carrying
				Amount						Amount
Customer agreements and lists		2.5 to 18 years		$	163,990		$	(100,482	)	$	63,508
Provider networks and other		1 to 16 years			11,593			(5,407	)		6,186

				$	175,583		$	(105,889	)	$	69,694




		December 31, 2014
Asset		Estimated		Gross			Accumulated			Net
		Useful Life		Carrying			Amortization			Carrying
				Amount						Amount
Customer agreements and lists		2.5 to 18 years		$	249,390		$	(121,788	)	$	127,602
Provider networks and other		1 to 16 years			13,013			(6,897	)		6,116

				$	262,403		$	(128,685	)	$	133,718


Amortization expense was $9.7 million, $10.6 million and $22.8 million for the years ended December 31, 2012, 2013 and 2014, respectively. The Company estimates amortization expense will be $25.1 million, $20.8 million, $16.7 million, $15.3 million and $15.2 million for the years ending December 31, 2015, 2016, 2017, 2018, and 2019, respectively.
Cost of Care, Medical Claims Payable and Other Medical Liabilities
Cost of care is recognized in the period in which members receive managed healthcare services. In addition to actual benefits paid, cost of care in a period also includes the impact of accruals for estimates of medical claims payable. Medical claims payable represents the liability for healthcare claims reported but not yet paid and claims incurred but not yet reported ("IBNR") related to the Company's managed healthcare businesses. Such liabilities are determined by employing actuarial methods that are commonly used by health insurance actuaries and that meet actuarial standards of practice.
The IBNR portion of medical claims payable is estimated based on past claims payment experience for member groups, enrollment data, utilization statistics, authorized healthcare services and other factors. This data is incorporated into contract-specific actuarial reserve models and is further analyzed to create "completion factors" that represent the average percentage of total incurred claims that have been paid through a given date after being incurred. Factors that affect estimated completion factors include benefit changes, enrollment changes, shifts in product mix, seasonality influences, provider reimbursement changes, changes in claims inventory levels, the speed of claims processing and changes in paid claim levels. Completion factors are applied to claims paid through the financial statement date to estimate the ultimate claim expense incurred for the current period. Actuarial estimates of claim liabilities are then determined by subtracting the actual paid claims from the estimate of the ultimate incurred claims. For the most recent incurred months (generally the most recent two months), the percentage of claims paid for claims incurred in those months is generally low. This makes the completion factor methodology less reliable for such months. Therefore, incurred claims for any month with a completion factor that is less than 70 percent are generally not projected from historical completion and payment patterns; rather they are projected by estimating claims expense based on recent monthly estimated cost incurred per member per month times membership, taking into account seasonality influences, benefit changes and healthcare trend levels, collectively considered to be "trend factors."
Medical claims payable balances are continually monitored and reviewed. If it is determined that the Company's assumptions in estimating such liabilities are significantly different than actual results, the Company's results of operations and financial position could be impacted in future periods. Adjustments of prior period estimates may result in additional cost of care or a reduction of cost of care in the period an adjustment is made. Further, due to the considerable variability of healthcare costs, adjustments to claim liabilities occur each period and are sometimes significant as compared to the net income recorded in that period. Prior period development is recognized immediately upon the actuary's judgment that a portion of the prior period liability is no longer needed or that additional liability should have been accrued. The following table presents the components of the change in medical claims payable for the years ended December 31, 2012, 2013 and 2014 (in thousands):

		2012			2013			2014
Claims payable and IBNR, beginning of period		$	157,099		$	222,929		$	242,229
Cost of care:
Current year			2,076,190			2,264,276			2,097,395
Prior years(3)			(4,300	)		(31,300	)		(8,800	)

Total cost of care			2,071,890			2,232,976			2,088,595

Claim payments and transfers to other medical liabilities(1):
Current year			1,877,459			2,053,274			1,845,325
Prior years			128,601			160,402			206,696

Total claim payments and transfers to other medical liabilities			2,006,060			2,213,676			2,052,021

Claims payable and IBNR, end of period			222,929			242,229			278,803
Withhold receivables, end of period(2)			(24,500	)		(13,888	)		(321	)

Medical claims payable, end of period		$	198,429		$	228,341		$	278,482




-1	For any given period, a portion of unpaid medical claims payable could be covered by reinvestment liability (discussed below) and may not impact the Company's results of operations for such periods.
-2	Medical claims payable is offset by customer withholds from capitation payments in situations in which the customer has the contractual requirement to pay providers for care incurred.
-3	Favorable development in 2012, 2013, and 2014 was $4.3 million, $31.3 million, and $8.8 million, respectively.
Favorable prior year care development for 2012 was related to a favorable contract settlement of covered services, as well as lower medical trends and faster claims completion than originally assumed.
Development for 2013 was impacted by several factors, including approximately $15.1 million of adjustments resulting from an annual reconciliation process with certain providers, $8.3 million of adjustments related to new contracts in 2012 for which we did not have historical claim payment patterns, and $7.9 million related to faster claims completion rates and lower medical cost trends than originally estimated. The annual reconciliation process for one of our Public Sector contracts, which contract terminated March 31, 2014, identified block payments to providers which exceeded the cost of care incurred by such providers; these particular provider contracts required the providers to return such excess block payments to the Company.
Favorable prior year care development for 2014 was related to lower medical trends and faster claims completion than originally assumed in all business segments.
Actuarial standards of practice require that claim liabilities be adequate under moderately adverse circumstances. Adverse circumstances are situations in which the actual claims experience could be higher than the otherwise estimated value of such claims. In many situations, the claims paid amount experienced will be less than the estimate that satisfies the actuarial standards of practice. Any prior period favorable cost of care development related to a lack of moderately adverse conditions is excluded from "Cost of Care—Prior Years" adjustments, as a similar provision for moderately adverse conditions is established for current year cost of care liabilities and therefore does not generally impact net income.
Due to the existence of risk sharing and reinvestment provisions in certain customer contracts, principally in the Public Sector segment, a change in the estimate for medical claims payable does not necessarily result in an equivalent impact on cost of care.
The Company believes that the amount of medical claims payable is adequate to cover its ultimate liability for unpaid claims as of December 31, 2014; however, actual claims payments may differ from established estimates.
Other medical liabilities consist primarily of "reinvestment" payables under certain managed healthcare contracts with Medicaid customers and "profit share" payables under certain risk-based contracts. Under a contract with reinvestment features, if the cost of care is less than certain minimum amounts specified in the contract (usually as a percentage of revenue), the Company is required to "reinvest" such difference in behavioral healthcare programs when and as specified by the customer or to pay the difference to the customer for their use in funding such programs. Under a contract with profit share provisions, if the cost of care is below certain specified levels, the Company will "share" the cost savings with the customer at the percentages set forth in the contract. In addition, certain contracts include provisions to provide the Company additional funding if the cost of care is above the specified levels.
Other medical liabilities also include amount payable to pharmacies for claims that have been adjudicated by the Company but not yet paid.
Advertising Costs
Advertising costs consist primarily of printed media services, event sponsorships, and promotional items, which are expensed as incurred. Advertising expense was approximately $2.0 million, $2.3 million, and $2.7 million for the fiscal years ended December 31, 2012, 2013, and 2014, respectively.
Accrued Liabilities
As of December 31, 2013 the only individual current liability that exceeded five percent of total current liabilities related to accrued employee compensation liabilities of $40.2 million. As of December 31, 2014, the only individual current liabilities that exceeded five percent of total current liabilities related to accrued employee compensation liabilities of $47.0 million and deferred revenue of $29.8 million.
Net Income per Common Share attributable to Magellan Health, Inc.
Net income per common share attributable to Magellan Health, Inc. is computed based on the weighted average number of shares of common stock and common stock equivalents outstanding during the period (see Note 6—"Stockholders' Equity").
Redeemable Non-Controlling Interest
As of December 31, 2014, the Company held a 75% equity interest in AlphaCare Holdings. The other shareholders of AlphaCare Holdings have the right to exercise put options, requiring the Company to purchase up to 50% of the remaining shares prior to January 1, 2017 provided certain membership levels are attained. After December 31, 2016 the other shareholders of AlphaCare Holdings have the right to exercise put options requiring the Company to purchase all or any portion of the remaining shares. In addition, after December 31, 2016 the Company has the right to purchase all remaining shares. Non-controlling interests with redemption features, such as put options, that are not solely within the Company's control are considered redeemable non-controlling interest. Redeemable non-controlling interest is considered to be temporary and is therefore reported in a mezzanine level between liabilities and stockholders' equity on the Company's consolidated balance sheet at the greater of the initial carrying amount adjusted for the non-controlling interest's share of net income or loss or its redemption value. As of December 31, 2013, the Company recorded $10.6 million of redeemable non-controlling interest in relation to the acquisition. The carrying value of the non-controlling interest as of December 31, 2014 was $6.0 million. The $4.6 million reduction in carrying value for the year ended December 31, 2014 is a result of operating losses, partially offset by the impact of additional capital provided by the Company. The Company recognizes changes in the redemption value on a quarterly basis and adjusts the carrying amount of the non-controlling interest to equal the redemption value at the end of each reporting period. Under this method, this is viewed at the end of the reporting period as if it were also the redemption date for the non-controlling interest. The Company will reflect redemption value adjustments in the earnings per share calculation if redemption value is in excess of the carrying value of the non-controlling interest. As of December 31, 2014, the carrying value of the non-controlling interest exceeded the redemption value and therefore no adjustment to the carrying value was required.
Stock Compensation
At December 31, 2013 and 2014, the Company had equity-based employee incentive plans, which are described more fully in Note 6—"Stockholders' Equity". In addition, the Company issued restricted stock awards associated with the Partners Rx and CDMI acquisitions, which are also described more fully in Note 6—"Stockholders' Equity". The Company uses the Black-Scholes-Merton formula to estimate the fair value of substantially all stock options granted to employees, and recorded stock compensation expense of $17.8 million, $21.3 million and $40.6 million for the years ended December 31, 2012, 2013 and 2014, respectively. As stock compensation expense recognized in the consolidated statements of income for the years ended December 31, 2012, 2013 and 2014 is based on awards ultimately expected to vest, it has been reduced for annual estimated forfeitures of four percent. If the actual number of forfeitures differs from those estimated, additional adjustments to compensation expense may be required in future periods. If vesting of an award is conditioned upon the achievement of performance goals, compensation expense during the performance period is estimated using the most probable outcome of the performance goals, and adjusted as the expected outcome changes. The Company recognizes compensation costs for awards that do not contain performance conditions on a straight-line basis over the requisite service period, which is generally the vesting term of three years. For restricted stock units that include performance conditions, stock compensation is recognized using an accelerated method over the vesting period.

Acquisitions

Acquisitions	12 Months Ended
Acquisitions	Dec. 31, 2014
Acquisitions
Acquisitions
	3. Acquisitions
	Acquisition of Partners Rx Management, LLC
	Pursuant to the September 6, 2013 agreement and plan of merger (the "Partners Agreement") with Partners Rx Management, LLC ("Partners Rx"), on October 1, 2013 the Company acquired all of the outstanding ownership interests of Partners Rx. Partners Rx is a full-service commercial PBM with a strong focus on health plans and self-funded employers primarily through sales through third party administrators, consultants and brokers. As consideration for the transaction, the Company paid $99.3 million in cash, including net receipts of $0.7 million for working capital adjustments. The Company funded the acquisition with cash on hand.
	During the year ended December 31, 2014, the Company made a measurement period adjustment of $0.3 million to decrease the deferred tax liability related to the Partners Rx acquisition.
	Acquisition of AlphaCare Holdings, Inc.
	Pursuant to the August 13, 2013 stock purchase agreement (the "AlphaCare Agreement"), on December 31, 2013 the Company acquired a 65% equity interest in AlphaCare Holdings, the holding company for AlphaCare, a Health Maintenance Organization ("HMO") in New York that operates a New York Managed Long-Term Care Plan in Bronx, New York, Queens, Kings and Westchester Counties, and Medicare Plans in Bronx, New York, Queens and Kings Counties.
	Prior to December 31, 2013, the Company held a 7% equity interest in AlphaCare through an equity investment of $2.0 million in preferred membership units of AlphaCare's previous holding company, AlphaCare Holdings, LLC on May 17, 2013. The Company also previously loaned $5.9 million to AlphaCare Holdings, LLC. As part of the AlphaCare Agreement, AlphaCare Holdings, LLC was reorganized into a Delaware corporation, and on December 31, 2013 the preferred membership units and the loan were converted into Series A Participating Preferred Stock ("AlphaCare Series A Preferred") of AlphaCare Holdings and the Company purchased an additional $17.4 million of AlphaCare Series A Preferred. During 2014, the Company purchased $2.2 million in common shares from the minority owners of AlphaCare Holdings. During 2014, the Company also purchased an additional $8.9 million in shares of Series B Participating Preferred Stock and Series C Participating Preferred Stock issued by AlphaCare Holdings. As of December 31, 2014, the Company held a 75% voting interest and the remaining shareholders held a 25% voting interest in AlphaCare Holdings.
	Based on the Company's 75% equity and voting interest in AlphaCare Holdings, the Company has included the results of operations in its consolidated financial statements. The Company reports the results of operations of AlphaCare Holdings within the Public Sector segment.
	During the year ended December 31, 2014, the Company made net retrospective adjustments to provisional amounts related to the AlphaCare Holdings acquisition that were recognized at the acquisition date that, if known, would have affected the measurement amounts recognized as of that date.
	The estimated fair values of AlphaCare Holdings assets acquired and liabilities assumed at the date of acquisition are summarized as follows (in thousands):

			Initial Amounts			Measurement			Current Amounts
			Recognized at			Period			Recognized at
			Acquisition Date(1)			Adjustments(2)			Acquisition Date
	Assets acquired:
	Current assets (includes $6,249 of cash and $7,900 of restricted cash)		$	14,766		$	(548	)	$	14,218
	Property and equipment, net			310			(39	)		271
	Other assets			475			66			541
	Other identified intangible assets			4,590			2,600			7,190
	Goodwill			20,882			(3	)		20,879

	Total assets acquired			41,023			2,076			43,099

	Liabilities assumed:
	Current liabilities			3,139			1,039			4,178
	Deferred tax liabilities			1,830			1,037			2,867

	Total liabilities assumed			4,969			2,076			7,045

	Net assets acquired			36,054			—			36,054
	Less: net assets attributable to noncontrolling interest			(10,554	)		—			(10,554	)

	Net consideration		$	25,500		$	—		$	25,500




	-1	As previously reported in the Company's Form 10-K for the year ended December 31, 2013.
	-2	The measurement period adjustments were recorded to reflect a $2.6 million increase in the customer contracts identified intangible and a $1.0 million increase to the deferred tax liability as a result of finalization of the valuation and other net changes of ($1.6) million as a result of changes in the estimated fair values of the associated assets acquired and liabilities assumed based on factors existing at the acquisition date.
	Acquisition of CDMI, LLC
	Pursuant to the March 31, 2014 purchase agreement (the "CDMI Agreement") with CDMI, on April 30, 2014 the Company acquired all of the outstanding equity interests of CDMI. CDMI provides a range of clinical consulting programs and negotiates and administers drug rebates for managed care organizations and other customers. As consideration for the transaction, the Company paid a base price of $201.1 million, including net receipts of $3.9 million for working capital adjustments. Pursuant to the CDMI Agreement, the sellers and certain key management of CDMI purchased a total of $80.0 million in Magellan restricted common stock, which will generally vest over a 42-month period, conditioned upon continued employment. In addition to the base purchase price, the CDMI Agreement provides for potential contingent payments up to a maximum aggregate amount of $165.0 million. The potential future payments are contingent upon CDMI meeting certain client retention, client conversion, and gross profit milestones through December 31, 2016.
	The Company reports the results of operations of CDMI within its Pharmacy Management segment. The consolidated statements of income include total revenues and Segment Profit (as defined in Note 10—"Business Segment Information") from CDMI of $31.5 million and $27.2 million, respectively, for the eight months subsequent to the acquisition.
	The purchase price has been allocated based upon the estimated fair value of net assets acquired at the date of acquisition. A portion of the excess purchase price over tangible net assets acquired has been allocated to identified intangible assets totaling $84.2 million, consisting of customer contracts in the amount of $82.8 million, which is being amortized over 8 years, non-compete agreements in the amount of $1.0 million, which is being amortized over 6.5 years and tradename in the amount of $0.4 million, which is being amortized over 20 months. The entire excess purchase price over tangible net assets acquired is amortizable for tax purposes, although the Company's effective rate will not be impacted by the tax amortization.
	The estimated fair values of CDMI assets acquired and liabilities assumed at the date of the acquisition are summarized as follows (in thousands):

	Assets acquired:
	Current assets (includes $41,892 of accounts receivable)		$	41,996
	Property and equipment, net			457
	Other assets			9
	Other identified intangible assets			84,220
	Goodwill			69,092

	Total assets acquired			195,774

	Liabilities assumed:
	Current liabilities			28,985
	Contingent consideration			45,778

	Total liabilities assumed			74,763

	Net assets acquired		$	121,011


As of December 31, 2014, the Company established a working capital receivable of $0.1 million that was reflected as a reduction to goodwill.
The fair value of contingent consideration is determined based on probabilities of payment, projected payment dates, discount rates, and projected revenues, gross profits, and new contract execution. The projected revenues, gross profits, and client base are derived from the Company's latest internal operational forecasts. The Company used a probability weighted discounted cash flow method to arrive at the fair value of the contingent consideration. Changes in the operational forecasts, probabilities of payment, discount rates, or projected payment dates may result in change in the fair value measurement. Any changes in the fair value measurement are reflected as income or expense in the consolidated statements of income. As of the acquisition date, the Company estimated undiscounted future contingent payments of $61.7 million. As of December 31, 2014, the Company estimated undiscounted future contingent payments of $65.7 million. The increase is mainly a result of changes in operational forecasts and probabilities of payment. As of December 31, 2014, the fair value of the contingent consideration was $54.9 million and is included in accrued liabilities and contingent consideration in the consolidated balance sheet.
The Company's estimated fair values of CDMI assets acquired and liabilities assumed at the date of acquisition are determined based on certain valuations and analyses that have yet to be finalized, and accordingly, the assets acquired and liabilities assumed, as detailed above, are subject to adjustment once the analyses are completed. The Company will make appropriate adjustments to the purchase price allocation prior to the completion of the measurement period as required.
In connection with the CDMI acquisition, the Company incurred $1.3 million of acquisition related costs that were expensed during the year ended December 31, 2014. These costs are included within direct service costs and other operating expenses in the accompanying consolidated statements of income.
Other Acquisitions
Pursuant to the July 1, 2014 purchase agreement (the "Cobalt Agreement") with Cobalt, the Company acquired all of the outstanding equity interests of Cobalt. Cobalt provides computerized cognitive behavioral therapy self-service programs. As consideration for the transaction, the Company paid a base price of $8.0 million in cash, subject to working capital adjustments. In addition to the base purchase price, the Cobalt Agreement provides for potential contingent payments up to a maximum aggregate amount of $6.0 million. The potential future payments are contingent upon engagement of new members and new contract execution through June 30, 2017. The purchase price has been allocated based upon the estimated fair value of net assets acquired at the date of acquisition. The Company will make appropriate adjustments to the purchase price allocations prior to the completion of the measurement period as required.
The Company reports the results of operations of Cobalt within its Commercial segment.
Pro Forma Financial Information
The following unaudited supplemental pro forma information represents the Company's consolidated results of operations for the year ended December 31, 2013 as if the acquisition of CDMI had occurred on January 1, 2013, and for the year ended December 31, 2014 as if the acquisition of CDMI had occurred on January 1, 2014, in all cases after giving effect to certain adjustments including interest income, depreciation and amortization, and stock compensation expense.
Such pro forma information does not purport to be indicative of operating results that would have been reported had the acquisition of CDMI occurred on January 1, 2013 and 2014 (in thousands, except per share amounts):

		Year Ended
		December 31,
		2013			2014
		(unaudited)			(unaudited)
Net revenue		$	3,588,975		$	3,771,711
Net income			114,549			75,530
Income per common share attributable to Magellan Health, Inc.:
Basic		$	4.23		$	2.83
Diluted		$	4.12		$	2.75

Benefit_Plans

Benefit Plans	12 Months Ended
Benefit Plans	Dec. 31, 2014
Benefit Plans
Benefit Plans
	4. Benefit Plans
	The Company has a defined contribution retirement plan (the "401(k) Plan"). Employee participants can elect to contribute up to 75 percent of their compensation, subject to Internal Revenue Service ("IRS") deferral limitations. The Company makes contributions to the 401(k) Plan based on employee compensation and contributions. The Company matches 50 percent of each employee's contribution up to 6 percent of their annual compensation. The Company recognized $6.3 million, $7.4 million and $8.7 million of expense for the years ended December 31, 2012, 2013 and 2014, respectively, for matching contributions to the 401(k) Plan.

LongTerm_Debt_and_Capital_Leas

Long-Term Debt and Capital Lease Obligations	12 Months Ended
	Dec. 31, 2014
Long-Term Debt and Capital Lease Obligations.
Long-Term Debt and Capital Lease Obligations
	5. Long-Term Debt and Capital Lease Obligations
	On December 9, 2011, the Company entered into a Senior Secured Revolving Credit Facility Credit Agreement with Citibank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and U.S. Bank, N.A. that provided for up to $230.0 million of revolving loans with a sublimit of up to $70.0 million for the issuance of letters of credit for the account of the Company (the "2011 Credit Facility"). Citibank, N.A., assigned a portion of its interest in the 2011 Credit Facility to Bank of Tokyo. The 2011 Credit Facility was guaranteed by substantially all of the subsidiaries of the Company and was secured by substantially all of the assets of the Company and the subsidiary guarantors. The 2011 Credit Facility was scheduled to mature on December 9, 2014.
	Under the 2011 Credit Facility, the annual interest rate on Revolving Loan borrowings was equal to (i) in the case of U.S. dollar denominated loans, the sum of a borrowing margin of 0.75 percent plus the higher of the prime rate, one-half of one percent in excess of the overnight "federal funds" rate, or the Eurodollar rate for one month plus 1.00 percent, or (ii) in the case of Eurodollar denominated loans, the sum of a borrowing margin of 1.75 percent plus the Eurodollar rate for the selected interest period. The Company had the option to borrow in U.S. dollar denominated loans or Eurodollar denominated loans at its discretion. Letters of Credit issued under the Revolving Loan Commitment bore interest at the rate of 1.875 percent. The commitment commission on the 2011 Credit Facility was 0.375 percent of the unused Revolving Loan Commitment.
	On July 23, 2014, the Company entered into a $500.0 million Credit Agreement with various lenders that provides for Magellan Rx Management, Inc. (a wholly owned subsidiary of Magellan Health, Inc.) to borrow up to $250.0 million of revolving loans, with a sublimit of up to $70.0 million for the issuance of letters of credit for the account of the Company, and a term loan in an original aggregate principal amount of $250.0 million (the "2014 Credit Facility"). At such point, the 2011 Credit Facility was terminated. The 2014 Credit Facility is guaranteed by substantially all of the non-regulated subsidiaries of the Company and will mature on July 23, 2019, but the Company holds an option to extend the 2014 Credit Facility for an additional one year period.
	Under the 2014 Credit Facility, the annual interest rate on revolving and term loan borrowings is equal to (i) in the case of base rate loans, the sum of a borrowing margin of 0.50 percent plus the higher of the prime rate, one-half of one percent in excess of the overnight "federal funds" rate, or the Eurodollar rate for one month plus 1.00 percent, or (ii) in the case of Eurodollar rate loans, the sum of a borrowing margin of 1.50 percent plus the Eurodollar rate for the selected interest period, which rates shall be adjusted from time to time based on the Company's total leverage ratio. The Company has the option to borrow in base rate loans or Eurodollar rate loans at its discretion. Letters of credit issued bear interest at the rate of 1.625 percent. The commitment commission on the 2014 Credit Facility is 0.20 percent of the unused Revolving Loan Commitment, which rate shall be adjusted from time to time based on the Company's total leverage ratio.
	On September 30, 2014, the Company completed a draw-down of the $250.0 million term loan. The borrowings will initially be maintained as a Eurodollar loan. The term loan is subject to certain quarterly amortization payments. As of December 31, 2014 the remaining balance on the term loan was $246.9 million. The term loan will mature on July 22, 2019. As of December 31, 2014, the term loan bore interest at a rate of 1.50 percent plus the London Interbank Offered Rate ("LIBOR"), which was equivalent to a total interest rate of 1.66925 percent. During the period the term loan was outstanding, from September 30, 2014 through December 31, 2014, the weighted average interest rate was 1.65496 percent. As of December 31, 2014, the contractual maturities of the term loan were as follows: 2015—$12.5 million; 2016—$15.6 million; 2017—$25.0 million; 2018—$25.0 million; and 2019—$168.8 million.
	The 2014 Credit Facility contains covenants that limit management's discretion in operating the Company's business by restricting or limiting the Company's ability, among other things, to:
	•	incur or guarantee additional indebtedness or issue preferred or redeemable stock;
	•	pay dividends and make other distributions;
	•	repurchase equity interests;
	•	make certain advances, investments and loans;
	•	enter into sale and leaseback transactions;
	•	create liens;
	•	sell and otherwise dispose of assets;
	•	acquire or merge or consolidate with another company; and
	•	enter into some types of transactions with affiliates.

	There were $33.7 million and $32.9 million of letters of credit outstanding at December 31, 2013 and 2014, respectively, and no Revolving Loan borrowings at December 31, 2013 or 2014.
	There were $26.7 million and $24.6 million of capital lease obligations at December 31, 2013 and December 31, 2014, respectively. The Company's capital lease obligations represent amounts due under leases for certain properties and computer software and equipment. The recorded gross cost of capital leased assets was $34.8 million at December 31, 2014.

Stockholders_Equity

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2014
Stockholders' Equity
Stockholders' Equity
	6. Stockholders' Equity
	Stock Compensation
	At December 31, 2013 and 2014, the Company had equity-based employee incentive plans. Prior to May 18, 2011, the Company utilized the 2008 Management Incentive Plan (the "2008 MIP"), 2006 Management Incentive Plan (the "2006 MIP"), 2003 Management Incentive Plan (the "2003 MIP") and 2006 Directors' Equity Compensation Plan (collectively the "Preexisting Plans") for grants of stock options, restricted stock, restricted stock units, and stock appreciation rights, to provide incentives to officers, employees and non-employee directors.
	On February 18, 2011, the board of directors of the Company approved the 2011 Management Incentive Plan ("2011 MIP"), and the 2011 MIP was approved by the Company's shareholders at the 2011 Annual Meeting of Shareholders on May 18, 2011. The 2011 MIP provides for the delivery of up to a number of shares equal to (i) 5,000,000 shares of common stock, plus (ii) the number of shares subject to outstanding awards under the Preexisting Plans which become available after shareholder approval of the 2011 MIP as a result of forfeitures, expirations, and in other permitted ways under the share recapture provisions of the 2011 MIP. Delivery of shares under "full-value" awards (awards other than options or stock appreciation rights) will be counted for each share delivered as 2.29 shares against the total number of shares reserved under the 2011 MIP. Upon shareholder approval of the 2011 MIP, no further awards were made under the Preexisting Plans, and any shares that remained available for new awards (i.e., were not committed for outstanding awards) under the Preexisting Plans were not carried forward to the 2011 MIP.
	The 2011 MIP provides for awards of stock options, restricted stock awards ("RSAs"), restricted stock units ("RSUs"), stock appreciation rights, cash-denominated awards and any combination of the foregoing. A restricted stock unit is a notional account representing the right to receive a share of the Company's Common Stock (or, at the Company's option, cash in lieu thereof) at some future date. In general, stock options vest ratably on each anniversary over the three years subsequent to grant, and have a ten year life. With the exception of the shares received by the principal owners of Partners Rx and CDMI, RSAs generally vest on the anniversary of the grant. In general, RSUs vest ratably on each anniversary over the three years subsequent to grant, assuming that the associated performance hurdle(s) for that vesting year are met. Stock compensation expense is recognized using an accelerated method over the vesting period based upon the continued employment of the RSU holder and the probability of achievement of the performance hurdle(s). RSUs granted in 2012, 2013, and 2014 have performance thresholds based on EPS and return on equity ("ROE"). At December 31, 2014, 2,097,552 shares of the Company's common stock remain available for future grant under the Company's 2011 MIP.
	On February 27, 2014 the board of directors of the Company approved the 2014 Employee Stock Purchase Plan ("2014 ESPP"), and the 2014 ESPP was approved by the Company's shareholders at the 2014 Annual Meeting of Shareholders on May 21, 2014. The 2014 ESPP provides for up to 200,000 shares of the Company's ordinary common stock, plus the number of shares remaining under the 2011 Employee Stock Purchase Plan, to be issued. During the years ended December 31, 2013 and 2014, 28,715 and 30,838 shares of the Company's common stock were issued under the employee stock purchase plans, respectively. At December 31, 2014, 217,101 shares of the Company's common stock remain available for future grant under the Company's 2014 ESPP.
	Stock Options
	Summarized information related to the Company's stock options for the years ended December 31, 2012, 2013 and 2014 is as follows:

			2012						2013
			Options			Weighted			Options			Weighted
						Average						Average
						Exercise						Exercise
						Price						Price
	Outstanding, beginning of period			3,841,233		$	42.65			4,268,240		$	44.35
	Granted			1,402,800			47.54			1,047,133			53.18
	Forfeited			(444,939	)		46.08			(165,734	)		49.66
	Exercised			(530,854	)		39.03			(1,139,493	)		41.53

	Outstanding, end of period			4,268,240		$	44.35			4,010,146		$	47.23




			2014
			Options			Weighted			Weighted			Aggregate
						Average			Average			Intrinsic
						Exercise			Remaining			Value
						Price			Contractual			(in thousands)
									Term (in years)
	Outstanding, beginning of period			4,010,146		$	47.23
	Granted			769,636			59.62
	Forfeited			(267,028	)		53.74
	Exercised			(1,191,691	)		44.45

	Outstanding, end of period			3,321,063		$	50.58			6.98		$	31,648


	Vested and expected to vest at end of period			3,292,871		$	50.53			6.96		$	31,551


	Exercisable, end of period			1,693,694		$	46.58			5.56		$	22,813


	The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (based upon the difference between the Company's closing stock price on the last trading day of 2014 of $60.03 and the exercise price) for all in-the-money options as of December 31, 2014. This amount changes based on the fair market value of the Company's common stock.
	The total pre-tax intrinsic value of options exercised (based on the difference between the Company's closing stock price on the day the option was exercised and the exercise price) during the years ended December 31, 2012, 2013 and 2014 was $6.4 million, $18.2 million, and $19.7 million, respectively.
	The weighted average grant date fair value per share of substantially all stock options granted during the years ended December 31, 2012, 2013 and 2014 was $11.65, $12.24 and $13.49, respectively, as estimated using the Black-Scholes-Merton option pricing model based on the following weighted average assumptions:

			2012			2013			2014
	Risk-free interest rate			0.66	%		0.67	%		1.16	%
	Expected life			4 years			4 years			4 years
	Expected volatility			30.30	%		27.86	%		26.20	%
	Expected dividend yield			0.00	%		0.00	%		0.00	%
	For the years ended December 31, 2012, 2013 and 2014, expected volatility was based on the historical volatility of the Company's stock price.
	As of December 31, 2014, there was $12.5 million of total unrecognized compensation expense related to nonvested stock options that is expected to be recognized over a weighted average remaining recognition period of 1.92 years. The total fair value of options vested during the year ended December 31, 2014 was $11.3 million.
	The benefits of tax deductions in excess of recognized stock compensation expense are reported as a financing cash flow, rather than as an operating cash flow. In the years ended December 31, 2012, 2013 and 2014, approximately $1.0 million, $3.2 million and $3.2 million, respectively, of benefits of such tax deductions related to stock compensation expense were realized and as such were reported as financing cash flows. For the year ended December 31, 2014, the net change to additional paid-in capital related to tax benefits (deficiencies) was $3.0 million which primarily consists of the $3.2 million of excess tax benefits offset by $0.3 million of tax deficiencies. For the year ended December 31, 2013, the net change to additional paid-in capital related to tax benefits (deficiencies) was $2.3 million which primarily consists of the $3.2 million of excess tax benefits offset by $0.8 million of tax deficiencies. For the year ended December 31, 2012, the change to additional paid-in capital related to tax benefits (deficiencies) was $0.1 million which includes the $1.0 million of excess tax benefits offset by $0.9 million of tax deficiencies and adjustments to prior years' tax benefit from exercise of stock options and vesting of stock awards.
	Restricted Stock Awards
	Summarized information related to the Company's nonvested RSAs for the years ended December 31, 2012, 2013 and 2014 is as follows:

			2012						2013						2014
			Shares			Weighted			Shares			Weighted			Shares			Weighted
						Average						Average						Average
						Grant Date						Grant Date						Grant Date
Fair Value						Fair Value						Fair Value
Outstanding, beginning of period				18,748		$	52.11			23,672		$	42.25			192,165		$	56.59
Awarded(1)			23,672			42.25			192,165			56.59			1,451,231			57.75
Vested			(18,748	)		52.11			(23,672	)		42.25			(16,569	)		52.82
Forfeited			—			—			—			—			—			—

Outstanding, ending of period			23,672		$	42.25			192,165		$	56.59			1,626,827		$	57.66




-1	December 31, 2013 includes 175,596 shares associated with the Partners Rx acquisition. December 31, 2014 includes 1,433,946 shares associated with the CDMI acquisition.
As of December 31, 2014, there was $68.1 million of unrecognized stock compensation expense related to nonvested restricted stock awards. This cost is expected to be recognized over a weighted-average period of 2.38 years.
Restricted Stock Units
Summarized information related to the Company's nonvested RSUs for the years ended December 31, 2012, 2013 and 2014 is as follows:

		2012						2013						2014
		Shares			Weighted			Shares			Weighted			Shares			Weighted
					Grant Date						Grant Date						Grant Date
					Fair Value						Fair Value						Fair Value
Outstanding, beginning of period			206,338		$	44.63			202,690		$	47.38			194,913		$	50.21
Awarded			131,913			47.48			98,580			52.62			76,306			60.39
Vested			(99,976	)		41.81			(95,138	)		46.72			(91,510	)		49.53
Forfeited			(35,585	)		47.43			(11,219	)		49.79			(23,014	)		54.86

Outstanding, ending of period			202,690		$	47.38			194,913		$	50.21			156,695		$	54.88


As of December 31, 2014, there was $4.1 million of unrecognized stock compensation expense related to nonvested restricted stock units. This cost is expected to be recognized over a weighted-average period of 2.01 years.
Income per Common Share Attributable to Magellan Health, Inc.
The following table reconciles income (numerator) and shares (denominator) used in the Company's computations of net income per share for the years ended December 31, 2012, 2013 and 2014 (in thousands, except per share data):

		2012			2013			2014
Numerator:
Net income attributable to Magellan Health, Inc.		$	151,027		$	125,261		$	79,404


Denominator:
Weighted average number of common shares outstanding—basic			27,386			27,054			26,689
Common stock equivalents—stock options			406			564			495
Common stock equivalents—restricted stock awards			11			13			155
Common stock equivalents—restricted stock units			77			42			14
Common stock equivalents—employee stock purchase plan			2			2			2

Weighted average number of common shares outstanding—diluted			27,882			27,675			27,355


Net income attributable to Magellan Health, Inc. per common share—basic		$	5.51		$	4.63		$	2.98


Net income attributable to Magellan Health, Inc. per common share—diluted		$	5.42		$	4.53		$	2.90


The weighted average number of common shares outstanding for the years ended December 31, 2012, 2013 and 2014 was calculated using outstanding shares of the Company's common stock. Common stock equivalents included in the calculation of diluted weighted average common shares outstanding for the years ended December 31, 2012, 2013 and 2014 represent stock options to purchase shares of the Company's common stock, restricted stock awards, restricted stock units and stock purchased under the ESPP.
For the years ended December 31, 2012, 2013 and 2014, the Company had additional potential dilutive securities outstanding representing 2.2 million, 0.8 million and 0.7 million options, respectively, that were not included in the computation of dilutive securities because they were anti-dilutive for such periods. Had these shares not been anti-dilutive, all of these shares would not have been included in the net income per common share calculation as the Company uses the treasury stock method of calculating diluted shares.
Stock Repurchases
The Company's board of directors has previously authorized a series of stock repurchase plans. Stock repurchases for each such plan could be executed through open market repurchases, privately negotiated transactions, accelerated share repurchases or other means. The board of directors authorized management to execute stock repurchase transactions from time to time and in such amounts and via such methods as management deemed appropriate. Each stock repurchase program could be limited or terminated at any time without prior notice.
On October 25, 2011 the Company's board of directors approved a stock repurchase plan which authorized the Company to purchase up to $200 million of its outstanding common stock through October 25, 2013. On July 24, 2013 the Company's board of directors approved an increase and extension of the stock repurchase plan which authorized the Company to purchase up to $300 million of its outstanding stock through October 25, 2015.
Pursuant to this program, the Company made open market purchases as follows (aggregate cost excludes broker commissions and is reflected in millions):

Period		Total Number			Average			Aggregate
		of Shares			Price Paid			Cost
		Purchased			per Share
November 11, 2011 - December 31, 2011			671,776		$	48.72		$	32.7
January 1, 2012 - December 31, 2012			459,252			50.27			23.1
January 1, 2013 - December 31, 2013			1,159,871			51.83			60.1
January 1, 2014 - November 21, 2014			3,183,306			57.82			184.1

			5,474,205					$	300.0


On October 22, 2014 the Company's board of directors approved a new stock repurchase plan which authorized the Company to purchase up to $200 million of its outstanding common stock through October 22, 2016. Pursuant to this program, the Company made open market purchases as follows (aggregate cost excludes broker commissions and is reflected in millions):

Period		Total Number			Average			Aggregate
		of Shares			Price Paid			Cost
		Purchased			per Share
November 24, 2014 - December 31, 2014			232,170		$	60.65		$	14.1


During the period from January 1, 2015 through February 23, 2015, the Company made additional open market purchases of 352,592 shares of the Company's common stock at an aggregate cost of $21.3 million (excluding broker commissions).
Recent Sales of Unregistered Securities
On September 6, 2013, the Company and Partners Rx entered into a merger agreement pursuant to which on October 1, 2013 certain principal owners of Partners Rx purchased 175,596 shares of the Company's restricted stock for a total purchase price of $10 million. The purchase price of the shares was equal to the average of the closing prices of the Company's stock for the five trading day period on the day prior to the execution of the Merger Agreement. The shares received by such principal owners of Partners Rx are subject to vesting over three years with 50% vesting on the second anniversary of the acquisition and 50% vesting on the third anniversary of the acquisition, conditioned on continued employment with the Company on the applicable vesting dates. The shares were issued to the principal owners of Partners Rx in a private placement pursuant to Section 4(a)(2) of the Securities Act.
On March 31, 2014, the Company and CDMI, LLC entered into a purchase agreement pursuant to which on April 30, 2014 the sellers and key management of CDMI purchased 1,433,946 shares of the Company's restricted stock for a total purchase price of $80 million. The aggregate number of shares issued was determined by dividing $80.0 million by the volume weighted average trading prices per share of Magellan's ordinary common stock on the NASDAQ as reported by Bloomberg US L.P. using its "Volume at Price" function over the five trading days ended on the trading day prior to the closing of the purchase agreement. The shares received by such sellers and key management of CDMI are subject to vesting over 42 months with 25% vesting after 18 months and 75% vesting after 42 months, conditioned on continued employment. The shares were issued to the sellers and key management of CDMI in a private placement pursuant to Section 4(a)(2) of the Securities Act.

Income_Taxes

Income Taxes	12 Months Ended
Income Taxes	Dec. 31, 2014
Income Taxes
Income Taxes
	7. Income Taxes
	Income Tax Expense
	The components of income tax expense (benefit) for the following years ended December 31 were as follows (in thousands):

			2012			2013			2014
	Income taxes currently payable:
	Federal		$	18,345		$	37,691		$	42,674
	State			2,187			3,445			5,306

				20,532			41,136			47,980

	Deferred income taxes (benefits):
	Federal			14,922			(1,726	)		(3,236	)
	State			2,384			514			(1,055	)

				17,306			(1,212	)		(4,291	)

	Total income tax expense		$	37,838		$	39,924		$	43,689


	Total income tax expense for the years ended December 31 was different from the amount computed using the statutory federal income tax rate of 35 percent for the following reasons (in thousands):

			2012			2013			2014
	Income tax expense at federal statutory rate		$	67,107		$	57,815		$	41,272
	State income taxes, net of federal income tax benefit			6,812			4,412			2,738
	Tax contingencies reversed due to statute closings			(37,093	)		(25,299	)		(17,318	)
	Change in valuation allowances			(288	)		18			4,999
	Non-deductible ACA fees			—			—			8,205
	Other-net			1,300			2,978			3,793

	Total income tax expense		$	37,838		$	39,924		$	43,689


	Deferred Income Taxes
	The significant components of deferred tax assets and liabilities at December 31 were as follows (in thousands):

			2013			2014
	Deferred tax assets:
	Net operating loss carryforwards		$	8,604		$	15,867
	Share-based compensation			15,926			14,519
	Other accrued compensation			7,619			8,332
	Claims reserves			8,005			9,429
	Deferred revenue			6,708			4,090
	Other non-deductible accrued liabilities			13,568			5,919
	Indirect tax benefits			4,804			3,825
	Other deferred tax assets			987			2,356

	Total deferred tax assets			66,221			64,337
	Valuation allowances			(3,102	)		(12,363	)

	Deferred tax assets after valuation allowances			63,119			51,974

	Deferred tax liabilities:
	Depreciation			(43,417	)		(42,644	)
	Amortization of goodwill and intangible assets			(20,615	)		(9,407	)
	Prepaid expenses			(3,603	)		(3,631	)
	Other deferred tax liabilities			—			(16	)

	Total deferred tax liabilities			(67,635	)		(55,698	)

	Net deferred tax liabilities		$	(4,516	)	$	(3,724	)


The Company has $3.0 million of federal net operating loss carryforwards ("NOLs") available to reduce its consolidated taxable income in 2015 and subsequent years. These NOLs will expire in 2017 through 2019 if not used and are subject to examination and adjustment by the IRS. AlphaCare has $24.5 million of federal NOLs available to reduce its consolidated taxable income in 2015 and subsequent years. These NOLs will expire in 2033 through 2034 if not used and are subject to examination and adjustment by the IRS. The Company and its subsidiaries also have $160.5 million of state NOLs available to reduce state taxable income at certain subsidiaries in 2015 and subsequent years. Most of these NOLs will expire in 2017 through 2034 if not used and are subject to examination and adjustment by the respective state tax authorities.
The Company's valuation allowances against deferred tax assets were $3.1 million and $12.4 million as of December 31, 2013 and 2014, respectively, mostly relating to uncertainties regarding the eventual realization of the AlphaCare federal NOLs and certain state NOLs. Reversals of valuation allowances are recorded in the period they occur, typically as reductions to income tax expense. Determination of the amount of deferred tax assets considered realizable requires significant judgment and estimation regarding the forecasts of future taxable income which are consistent with the plans and estimates the Company uses to manage the underlying businesses. Although consideration is also given to potential tax planning strategies which might be available to improve the realization of deferred tax assets, none were identified which were both prudent and reasonable. The Company believes taxable income expected to be generated in the future will be sufficient to support realization of the Company's deferred tax assets, as reduced by valuation allowances. This determination is based upon earnings history and future earnings expectations. Because AlphaCare has no earnings history due to the NOLs incurred to date, a full valuation allowance is recorded on such NOLs. Other than deferred tax benefits attributable to operating loss carryforwards, there are no time constraints within which the Company's deferred tax assets must be realized. Future changes in the estimated realizability of deferred tax assets could materially affect the Company's financial condition and results of operations.
Uncertain Tax Positions
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):

		2012			2013			2014
Balance as of beginning of period		$	99,230		$	56,601		$	30,176
Additions for current year tax positions			1,904			2,367			2,734
Additions for tax positions of prior years			403			214			118
Reductions for tax positions of prior years			(1,618	)		(396	)		(35	)
Reductions due to lapses of applicable statutes of limitation			(43,297	)		(28,606	)		(19,465	)
Reductions due to settlements with taxing authorities			(21	)		(4	)		—

Balance as of end of period		$	56,601		$	30,176		$	13,528


If these unrecognized tax benefits had been realized as of December 31, 2013 and 2014, $23.3 million and $9.2 million, respectively, would have reduced income tax expense.
The Company continually performs a comprehensive review of its tax positions and accrues amounts for tax contingencies related to uncertain tax positions. Based upon these reviews, the status of ongoing tax audits, and the expiration of applicable statutes of limitations, accruals are adjusted as necessary. The tax benefit from an uncertain tax position is recognized when it is more likely than not that, based on the technical merits, the position will be sustained upon examination, including resolution of any related appeals or litigation processes.
The Company also adjusts these liabilities for unrecognized tax benefits when its judgment changes as a result of the evaluation of new information not previously available. However, the ultimate resolution of a disputed tax position following an examination by a taxing authority could result in a payment that is materially different from that accrued by the Company. These differences are reflected as increases or decreases to income tax expense in the period in which they are determined. However, reversals of unrecognized tax benefits related to deductions for stock compensation in excess of the related book expense are recorded as increases in additional paid-in capital. To the extent reversals of unrecognized tax benefits cannot be specifically traced to these excess deductions due to complexities in the tax law, the Company records the tax benefit for such reversals to additional paid-in capital on a pro-rata basis.
The statutes of limitations regarding the assessment of federal and most state and local income taxes for 2010 expired during 2014. As a result, $19.5 million of unrecognized tax benefits recorded as of December 31, 2013 were reversed in the current year, of which $16.0 million was reflected as a reduction to income tax expense, $2.6 million as an increase to additional paid-in capital, and the remainder as a decrease to deferred tax assets. Additionally, $1.4 million of accrued interest was reversed in 2014 and reflected as a reduction to income tax expense due to the closing of statutes of limitations on tax assessments.
The statutes of limitations regarding the assessment of federal and most state and local income taxes for 2009 expired during 2013. As a result, $28.6 million of unrecognized tax benefits recorded as of December 31, 2012 were reversed in 2013, of which $23.2 million was reflected as a reduction to income tax expense, $3.9 million as an increase to additional paid-in capital, and the remainder as a decrease to deferred tax assets. Additionally, $2.1 million of accrued interest was reversed in 2013 and reflected as a reduction to income tax expense due to the closing of statutes of limitations on tax assessments.
The statutes of limitations regarding the assessment of federal and most state and local income taxes for 2008 expired during 2012. As a result, $43.3 million of unrecognized tax benefits recorded as of December 31, 2011 were reversed in 2012, of which $35.7 million was reflected as a reduction to income tax expense, $6.2 million as an increase to additional paid-in capital, and the remainder as a decrease to deferred tax assets. Additionally, $1.4 million of accrued interest and $0.8 million of unrecognized state tax benefits were reversed in 2012 and reflected as reductions to income tax expense due to the closing of statutes of limitations on tax assessments and changes in tax return elections, respectively.
With few exceptions, the Company is no longer subject to income tax assessments by tax authorities for years ended prior to 2011. Further, it is reasonably possible the statutes of limitations regarding the assessment of federal and most state and local income taxes for 2011 could expire during 2015. Also, unrecognized tax benefits could be reversed during 2015 as the result of resolution of certain state tax examinations. Up to $4.2 million of unrecognized tax benefits recorded as of December 31, 2014 could be reversed during 2015 as a result of statute expirations and settlement of these state examinations, of which $2.7 million would be reflected as a reduction to income tax expense, $1.4 million as a decrease to deferred tax assets, and the remainder as an increase to additional paid-in capital. All reversals from statute expirations and examination resolutions would be reflected as discrete adjustments during the quarter in which the respective event occurs. As of December 31, 2013 and 2014, the Company had accrued approximately $1.5 million and $0.6 million, respectively, for the potential payment of interest and penalties (net of indirect benefits). The Company accrues interest and penalties related to unrecognized tax benefits in its provision for income taxes. During the years ended December 31, 2012, 2013 and 2014, the Company recorded approximately $(0.1) million, $(1.2) million and $(0.8) million in interest and penalties.

Supplemental_Cash_Flow_Informa

Supplemental Cash Flow Information	12 Months Ended
Supplemental Cash Flow Information	Dec. 31, 2014
Supplemental Cash Flow Information
Supplemental Cash Flow Information
	8. Supplemental Cash Flow Information
	Supplemental cash flow information for the years ended December 31, 2012, 2013 and 2014 is as follows (in thousands):

		2012		2013		2014
	Income taxes paid, net of refunds	$	57,663	$	65,511	$	57,728


	Interest paid	$	1,594	$	2,264	$	3,389


	Assets acquired through capital leases	$	—	$	29,739	$	2,810

Commitments_and_Contingencies

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2014
Commitments and Contingencies
Commitments and Contingencies
	9. Commitments and Contingencies
	Insurance
	The Company maintains a program of insurance coverage for a broad range of risks in its business. The Company has renewed its general, professional and managed care liability insurance policies with unaffiliated insurers for a one-year period from June 17, 2014 to June 17, 2015. The general liability policy is written on an "occurrence" basis, subject to a $0.05 million per claim un-aggregated self-insured retention. The professional liability and managed care errors and omissions liability policies are written on a "claims-made" basis, subject to a $1.0 million per claim ($10.0 million per class action claim) un-aggregated self-insured retention for managed care errors and omissions liability, and a $0.05 million per claim un-aggregated self-insured retention for professional liability.
	The Company maintains a separate general and professional liability insurance policy with an unaffiliated insurer for its specialty pharmaceutical dispensing operations. The specialty pharmaceutical dispensing operations insurance policy has a one-year term for the period June 17, 2014 to June 17, 2015. The general liability policy is written on an "occurrence" basis and the professional liability policy is written on a "claims-made" basis, subject to a $0.05 million per claim and $0.25 million aggregated self-insured retention.
	The Company maintains separate professional liability insurance policies with unaffiliated insurers for its Maricopa Contract business for the behavioral health direct care facilities, all of which were divested at various times prior to September 1, 2009. The Maricopa Contract professional liability insurance policies effective dates were from September 1, 2008 to September 1, 2009. The Company purchased a five-year extended reporting period for the professional liability policies effective September 1, 2009 for the period September 1, 2009 to September 1, 2014, subject to a $0.5 million per claim un-aggregated self-insured retention. The Company extended the reporting period for the professional liability policies for an additional two-year period to September 1, 2016, subject to a $0.5 million per claim un-aggregated self-insured retention. The professional liability policies are written on a "claims-made" basis.
	The Company is responsible for claims within its self-insured retentions, and for portions of claims reported after the expiration date of the policies if they are not renewed, or if policy limits are exceeded. The Company also purchases excess liability coverage in an amount that management believes to be reasonable for the size and profile of the organization.
	Regulatory Issues
	The managed healthcare industry is subject to numerous laws and regulations. The subjects of such laws and regulations cover, but are not limited to, matters such as licensure, accreditation, government healthcare program participation requirements, information privacy and security, reimbursement for patient services, and Medicare and Medicaid fraud and abuse. Over the past several years, government activity has increased with respect to investigations and/or allegations concerning possible violations of fraud and abuse and false claims statutes and/or regulations by healthcare organizations and insurers. Entities that are found to have violated these laws and regulations may be excluded from participating in government healthcare programs, subjected to fines or penalties or required to repay amounts received from the government for previously billed patient services. Compliance with such laws and regulations can be subject to future government review and interpretation, as well as regulatory actions unknown or unasserted at this time.
	In addition, regulators of certain of the Company's subsidiaries may exercise certain discretionary rights under regulations including increasing their supervision of such entities, requiring additional restricted cash or other security or seizing or otherwise taking control of the assets and operations of such subsidiaries.
	Legal
	The Company's operating activities entail significant risks of liability. From time to time, the Company is subject to various actions and claims arising from the acts or omissions of its employees, network providers or other parties. In the normal course of business, the Company receives reports relating to deaths and other serious incidents involving patients whose care is being managed by the Company. Such incidents occasionally give rise to malpractice, professional negligence and other related actions and claims against the Company or its network providers. Many of these actions and claims received by the Company seek substantial damages and therefore require the Company to incur significant fees and costs related to their defense.
	The Company is also subject to or party to certain class actions and other litigation and claims relating to its operations or business practices. In the opinion of management, the Company has recorded reserves that are adequate to cover litigation, claims or assessments that have been or may be asserted against the Company, and for which the outcome is probable and reasonably estimable. Management believes that the resolution of such litigation and claims will not have a material adverse effect on the Company's financial condition or results of operations; however, there can be no assurance in this regard.
	Operating Leases
	The Company leases certain of its operating facilities and equipment. The leases, which expire at various dates through January 2025, generally require the Company to pay all maintenance, property tax and insurance costs.
	At December 31, 2014, aggregate amounts of future minimum payments under operating leases were as follows: 2015—$16.5 million; 2016—$16.6 million; 2017—$14.4 million; 2018—$12.4 million; 2019—$11.2 million; 2020 and beyond—$25.7 million. Operating lease obligations include estimated future lease payments for both open and closed offices.
	At December 31, 2014, aggregate amounts of future minimum rentals to be received under operating subleases were as follows: 2015—$0.1 million; 2016—$0.1 million; 2017—$0.1 million; 2018—$0.2 million; and 2019—$0.1 million. Operating sublease rentals to be received relate to a portion of the Company's former headquarters.
	Rent expense is recognized on a straight-line basis over the terms of the leases. Rent expense was $19.5 million, $15.2 million and $17.4 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	Capital Leases
	At December 31, 2014, aggregate future amounts of minimum payments under capital leases, net of leasehold improvement allowances, were as follows: 2015—$0.6 million; 2016—$2.3 million; 2017—$3.5 million; 2018—$3.4 million; 2019—$2.9 million; 2020 and beyond—$18.4 million. Included in the future amounts payable under capital lease commitments is imputed interest of $6.5 million.
	Restructuring Activities
	As a result of restructuring activities initiated in 2013, the Company recorded liabilities for employee termination costs. The restructuring activities initiated in 2013 were related to contract terminations and organizational changes made in an effort to improve the Company's ability to execute its strategy. For the year ended December 31, 2014, the Company incurred $(1.7) million of employee termination costs, due to net reversals of prior year liabilities, and $1.3 million of lease termination and exit costs. The restructuring costs incurred by segment were Commercial $0.4 million, Public Sector $0.2 million and Corporate $(1.0) million. As of December 31, 2014, the Company incurred cumulative restructuring costs of $14.9 million related to 2013 initiatives. As of December 31, 2014, the cumulative restructuring costs incurred by segment were Public Sector $7.0 million, Commercial $5.1 million, and Corporate $2.8 million. Restructuring costs are included in direct service costs and other operating expenses in the consolidated statements of income.
	The following table summarizes the activity related to the employee termination cost aspect of the 2013 restructuring liabilities for the year ended December 31, 2014, by reportable segment (in thousands):

		Commercial			Public			Corporate			Consolidated
		Commercial			Sector			Corporate			Consolidated
	Liability for employee termination costs at December 31, 2013	$	4,744		$	4,296		$	3,429		$	12,469
	Additions		850			797			341			1,988
	Payments		(3,756	)		(3,596	)		(2,458	)		(9,810	)
	Liability released		(1,188	)		(1,196	)		(1,312	)		(3,696	)

	Liability for employee termination costs at December 31, 2014	$	650		$	301		$	—		$	951

Business_Segment_Information

Business Segment Information	12 Months Ended
Business Segment Information	Dec. 31, 2014
Business Segment Information
Business Segment Information
	10. Business Segment Information
	The accounting policies of the Company's segments are the same as those described in Note 1—"General." The Company evaluates performance of its segments based on profit or loss from operations before stock compensation expense, depreciation and amortization, interest expense, interest and other income, changes in the fair value of contingent consideration recorded in relation to acquisitions, gain on sale of assets, special charges or benefits, and income taxes ("Segment Profit"). Management uses Segment Profit information for internal reporting and control purposes and considers it important in making decisions regarding the allocation of capital and other resources, risk assessment and employee compensation, among other matters. Public Sector subcontracts with Pharmacy Management to provide pharmacy benefits management services for certain of Public Sector's customers. In addition, Pharmacy Management provides pharmacy benefits management for the Company's employees covered under its medical plan. As such, revenue, cost of care, cost of goods sold and direct service costs and other related to these arrangements are eliminated. The Company's segments are defined previously.
	The following tables summarize, for the periods indicated, operating results by business segment (in thousands):

			Commercial			Public			Specialty			Pharmacy			Corporate			Consolidated
						Sector			Solutions			Management			and
															Elimination
	Year Ended December 31, 2012
	Managed care and other revenue		$	728,512		$	1,620,875		$	349,133		$	227,669		$	(69,090	)	$	2,857,099
	Dispensing revenue			—			—			—			350,298			—			350,298
	Cost of care			(437,518	)		(1,413,320	)		(228,383	)		(61,759	)		69,090			(2,071,890	)
	Cost of goods sold			—			—			—			(328,414	)		—			(328,414	)
	Direct service costs and other			(172,035	)		(89,129	)		(55,418	)		(111,593	)		(129,337	)		(557,512	)
	Stock compensation expense(1)			532			1,111			1,567			1,007			13,566			17,783

	Segment profit (loss)		$	119,491		$	119,537		$	66,899		$	77,208		$	(115,771	)	$	267,364


	Identifiable assets by business segment(3)
	Restricted cash		$	18,254		$	147,766		$	—		$	—		$	60,534		$	226,554
	Net accounts receivable			39,678			27,415			7,580			65,755			(2,175	)		138,253
	Investments			21,273			101,093			—			—			111,324			233,690
	Pharmaceutical inventory			—			—			45,727			—			—			45,727
	Goodwill			120,485			—			104,549			201,905			—			426,939
	Other intangible assets, net			2,152			—			7,877			24,906			—			34,935

			Commercial			Public			Specialty			Pharmacy			Corporate			Consolidated
						Sector			Solutions			Management			and
															Elimination
	Year Ended December 31, 2013
	Managed care and other revenue		$	766,841		$	1,757,933		$	375,818		$	228,705		$	(66,248	)	$	3,063,049
	PBM and dispensing revenue			—			—			—			483,268			—			483,268
	Cost of care			(469,478	)		(1,523,023	)		(247,496	)		(59,227	)		66,248			(2,232,976	)
	Cost of goods sold			—			—			—			(455,601	)		—			(455,601	)
	Direct service costs and other			(172,491	)		(122,819	)		(57,334	)		(128,427	)		(138,475	)		(619,546	)
	Stock compensation expense(1)			503			1,038			1,630			1,172			16,909			21,252

	Segment profit (loss)		$	125,375		$	113,129		$	72,618		$	69,890		$	(121,566	)	$	259,446


	Identifiable assets by business segment(3)
	Restricted cash		$	25,107		$	196,651		$	—		$	—		$	14,938		$	236,696
	Net accounts receivable			50,407			62,977			7,368			115,527			1,906			238,185
	Investments			16,491			92,966			—			—			98,856			208,313
	Pharmaceutical inventory			—			—			49,609			—			—			49,609
	Goodwill			120,485			20,882			104,549			242,290			—			488,206
	Other intangible assets, net			1,076			4,590			6,123			57,905			—			69,694

			Commercial			Public			Specialty			Pharmacy			Corporate			Consolidated
						Sector			Solutions			Management			and
															Elimination
	Year Ended December 31, 2014
	Managed care and other revenue		$	673,996		$	1,635,609		$	471,300		$	205,524		$	(18,055	)	$	2,968,374
	PBM and dispensing revenue			—			—			—			844,512			(52,768	)		791,744
	Cost of care			(364,780	)		(1,385,858	)		(339,714	)		(16,298	)		18,055			(2,088,595	)
	Cost of goods sold			—			—			—			(784,758	)		51,809			(732,949	)
	Direct service costs and other			(160,341	)		(187,966	)		(71,785	)		(182,833	)		(120,573	)		(723,498	)
	Stock compensation expense(1)			618			894			1,387			28,829			8,856			40,584
	Changes in fair value of contingent consideration(1)			38			—			—			6,134			—			6,172
	Less: non-controlling interest segment profit (loss)(2)			—			(5,087	)		—			—			—			(5,087	)

	Segment profit (loss)		$	149,531		$	67,766		$	61,188		$	101,110		$	(112,676	)	$	266,919


Identifiable assets by business segment(3)
Restricted cash		$	9,515		$	204,166		$	—		$	—		$	1,644		$	215,325
Net accounts receivable			56,056			98,480			15,952			180,535			2,690			353,713
Investments			18,133			124,824			—			—			124,697			267,654
Pharmaceutical inventory			—			—			—			39,375			—			39,375
Goodwill			129,042			20,879			104,549			311,636			—			566,106
Other intangible assets, net			2,031			6,471			2,338			122,878			—			133,718


-1	Stock compensation expense and changes in present value of contingent consideration are included in direct service costs and other operating expenses, however these amounts are excluded from the computation of Segment Profit.
-2	The non-controlling interest portion of AlphaCare's segment profit (loss) is excluded from the computation of Segment Profit.
-3	Identifiable assets by business segment are those assets that are used in the operations of each segment. The remainder of the Company's assets cannot be specifically identified by segment.
The following table reconciles Segment Profit to consolidated income before income taxes for the years ended December 31, 2012, 2013 and 2014 (in thousands):

		2012			2013			2014
Segment Profit		$	267,364		$	259,446		$	266,919
Stock compensation expense			(17,783	)		(21,252	)		(40,584	)
Changes in fair value of contingent consideration			—			—			(6,172	)
Non-controlling interest segment profit (loss)			—			—			(5,087	)
Depreciation and amortization			(60,488	)		(71,994	)		(91,070	)
Interest expense			(2,247	)		(3,000	)		(7,387	)
Interest and other income			2,019			1,985			1,301

Income before income taxes		$	188,865		$	165,185		$	117,920

Selected_Quarterly_Financial_D

Selected Quarterly Financial Data (Unaudited)	12 Months Ended
Selected Quarterly Financial Data (Unaudited)	Dec. 31, 2014
Selected Quarterly Financial Data (Unaudited)
Selected Quarterly Financial Data (Unaudited)
	11. Selected Quarterly Financial Data (Unaudited)
	The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2013 and 2014 (in thousands, except per share amounts):

			For the Quarter Ended
			March 31,			June 30,			September 30,			December 31,
			2013			2013			2013			2013
	Fiscal Year Ended December 31, 2013
	Net revenue:
	Managed care and other		$	722,589		$	746,720		$	770,113		$	823,627
	PBM and dispensing			99,172			96,028			103,485			184,583

	Total net revenue			821,761			842,748			873,598			1,008,210

	Costs and expenses:
	Cost of care			525,027			537,630			564,537			605,782
	Cost of goods sold			93,512			90,175			97,503			174,411
	Direct service costs and other operating expenses(1)			139,627			144,497			156,834			178,588
	Depreciation and amortization			16,170			16,946			17,654			21,224
	Interest expense			610			792			789			809
	Interest and other income			(353	)		(358	)		(291	)		(983	)

	Total costs and expenses			774,593			789,682			837,026			979,831

	Income before income taxes			47,168			53,066			36,572			28,379
	Provision for income taxes			19,110			21,586			(10,660	)		9,888

	Net income		$	28,058		$	31,480		$	47,232		$	18,491


	Weighted average number of common shares outstanding—basic			27,110			26,829			26,990			27,285


	Weighted average number of common shares outstanding—diluted			27,648			27,338			27,704			28,008


	Net income per common share—basic:		$	1.03		$	1.17		$	1.75		$	0.68


	Net income per common share—diluted:		$	1.01		$	1.15		$	1.7		$	0.67



			For the Quarter Ended
			March 31,			June 30,			September 30,			December 31,
			2014			2014			2014			2014
	Fiscal Year Ended December 31, 2014
	Net revenue:
	Managed care and other		$	829,591		$	682,274		$	703,020		$	753,489
	PBM and dispensing			136,884			205,740			220,150			228,970

	Total net revenue			966,475			888,014			923,170			982,459

	Costs and expenses:
	Cost of care			605,708			481,617			495,180			506,090
	Cost of goods sold			125,298			192,566			202,180			212,905
	Direct service costs and other operating expenses(2)			164,722			179,034			176,928			202,814
	Depreciation and amortization			20,229			22,480			23,956			24,405
	Interest expense			836			2,004			2,879			1,668
	Interest and other income			(311	)		(275	)		(241	)		(474	)

	Total costs and expenses			916,482			877,426			900,882			947,408

	Income before income taxes			49,993			10,588			22,288			35,051
Provision for income taxes			25,613			6,261			(3,490	)		15,305

Net income			24,380			4,327			25,778			19,746
Less: net income (loss) attributable to non-controlling interest			(1,340	)		(659	)		(1,355	)		(1,819	)

Net income attributable to Magellan Health, Inc.		$	25,720		$	4,986		$	27,133		$	21,565


Weighted average number of common shares outstanding—basic			27,370			27,144			26,703			25,558


Weighted average number of common shares outstanding—diluted			28,051			27,765			27,242			26,382


Net income per common share attributable to Magellan Health, Inc.:
Net income per common share—basic:		$	0.94		$	0.18		$	1.02		$	0.84


Net income per common share—diluted:		$	0.92		$	0.18		$	1		$	0.82




-1	Includes stock compensation expense of $5,638, $4,602, $4,524 and $6,488 for the quarters ended March 31, June 30, September 30, and December 31, 2013, respectively.
-2	Includes stock compensation expense of $4,472, $9,550, $11,961 and $14,601 for the quarters ended March 31, June 30, September 30, and December 31, 2014, respectively.

SCHEDULE_IIVALUATION_AND_QUALI

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	Dec. 31, 2014
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
	(In thousands)

	Classification		Balance at		Charged to			Charged to			Addition			Deduction			Balance
			Beginning		Costs and			Other									at End
			of Period		Expenses			Accounts									of Period
	Year Ended December 31, 2012
	Allowance for doubtful accounts		$	3,336	$	1,947	-1	$	-346	-2	$	—		$	-325	-4		4,612
	Year Ended December 31, 2013
	Allowance for doubtful accounts			4,612		1,205	-1		-126	-2		130	-3		-374	-4		5,447
	Year Ended December 31, 2014
	Allowance for doubtful accounts			5,447		764	-1		-1,934	-2		107	-3		-337	-4		4,047


	-1	Bad debt expense.
	-2	Recoveries of accounts receivable previously written off.
	-3	To establish a reserve on pre-acquisition balances.
	-4	Accounts written off.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2014
Summary of Significant Accounting Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements
	In July 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-06, "Other Expenses (Topic 720): Fees Paid to the Federal Government by Health Insurers (a consensus of the FASB Emerging Issues Task Force)" ("ASU 2011-06"), which addresses how fees mandated by the Patient Protection and the Affordable Care Act ("ACA"), as amended by the Health Care and Education Reconciliation Act of 2010 (collectively, the "Health Reform Law"), should be recognized and classified in the income statements of health insurers. The Health Reform Law imposes a mandatory annual fee on health insurers for each calendar year beginning on or after January 1, 2014. ASU 2011-06 stipulates that the liability incurred for that fee be amortized to expense over the calendar year in which it is payable. This ASU is effective for calendar years beginning after December 31, 2013, when the fee initially became effective. The Company has obtained rate adjustments which the Company expects will cover the direct costs of these fees and the impact from non-deductibility of such fees for federal and state income tax purposes. To the extent the Company has a state public sector customer that does not renew, there may be some impact due to taxes paid where the timing and amount of recoupment of these additional costs is uncertain. In the event the Company is unable to obtain rate adjustments to cover the financial impact of the annual fee, the fee may have a material impact on the Company. For 2014, the ACA fee was $21.4 million which has been paid, and which is included in direct service costs and other operating expenses in the consolidated statements of income. The Company has recorded revenues of $36.5 million for 2014, associated with the accrual for the reimbursement of the economic impact of the ACA fees from its customers.
	In July 2013, the FASB issued ASU No. 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Carryforward Exists" ("ASU 2013-11"). ASU 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions, in which case such an unrecognized tax benefit should be presented in the financial statements as a liability. The amendments in this ASU do not require new recurring disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2013 and were adopted by the Company during the quarter ended March 31, 2014. The effect of the guidance is immaterial to the Company's consolidated results of operations, financial position, and cash flows.
	In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"), which is a new comprehensive revenue recognition standard that will supersede virtually all existing revenue guidance under GAAP. This ASU is effective for calendar years beginning after December 15, 2016. The Company is currently assessing the potential impact this ASU will have on the Company's consolidated results of operations, financial position, and cash flows.
	In June 2014, the FASB issued ASU No. 2014-12, "Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period" ("ASU 2014-12"), which revises the accounting treatment for stock compensation tied to performance targets. This ASU is effective for calendar years beginning after December 15, 2015. The guidance is not expected to materially impact the Company's consolidated results of operations, financial position, or cash flows.
	In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40)" ("ASU 2014-15"), which provides guidance in GAAP about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. This amendment should reduce diversity in the timing and content of footnote disclosures. This ASU is effective for the annual period ending after December 15, 2016 and for annual and interim periods thereafter. The guidance is not expected to materially impact the Company's consolidated results of operations, financial position, or cash flows.

Use of Estimates	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates of the Company include, among other things, accounts receivable realization, valuation allowances for deferred tax assets, valuation of goodwill and intangible assets, medical claims payable, other medical liabilities, contingent consideration, stock compensation assumptions, tax contingencies and legal liabilities. Actual results could differ from those estimates.

Revenue recognition	Managed Care and Other Revenue
	Managed Care Revenue. Managed care revenue, inclusive of revenue from the Company's risk, EAP and ASO contracts, is recognized over the applicable coverage period on a per member basis for covered members. The Company is paid a per member fee for all enrolled members, and this fee is recorded as revenue in the month in which members are entitled to service. The Company adjusts its revenue for retroactive membership terminations, additions and other changes, when such adjustments are identified, with the exception of retroactivity that can be reasonably estimated. The impact of retroactive rate amendments is generally recorded in the accounting period that terms to the amendment are finalized, and that the amendment is executed. Any fees paid prior to the month of service are recorded as deferred revenue. Managed care revenues approximated $2.5 billion, $2.7 billion and $2.6 billion for the years ended December 31, 2012, 2013 and 2014, respectively.
	Fee-For-Service and Cost-Plus Contracts. The Company has certain fee-for-service contracts, including cost-plus contracts, with customers under which the Company recognizes revenue as services are performed and as costs are incurred. This includes revenues received in relation to ACA fees billed on a cost reimbursement basis. Revenues from these contracts approximated $151.4 million, $215.1 million and $290.9 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	Block Grant Revenues. The Maricopa Contract (as defined below) was partially funded by federal, state and county block grant money, which represents annual appropriations. The Company recognizes revenue from block grant activity ratably over the period to which the block grant funding applies. Block grant revenues were approximately $124.8 million, $131.5 million and $33.3 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	Performance-Based Revenue. The Company has the ability to earn performance-based revenue under certain risk and non-risk contracts. Performance-based revenue generally is based on either the ability of the Company to manage care for its clients below specified targets, or on other operating metrics. For each such contract, the Company estimates and records performance-based revenue after considering the relevant contractual terms and the data available for the performance-based revenue calculation. Pro-rata performance-based revenue may be recognized on an interim basis pursuant to the rights and obligations of each party upon termination of the contracts. Performance-based revenues were $25.4 million, $14.0 million and $12.0 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	Rebate Revenue. The Company administers a rebate program for certain clients through which the Company coordinates the achievement, calculation and collection of rebates and administrative fees from pharmaceutical manufacturers on behalf of clients. Each period, the Company estimates the total rebates earned based on actual volumes of pharmaceutical purchases by the Company's clients, as well as historical and/or anticipated sharing percentages. The Company earns fees based upon the volume of rebates generated for its clients. The Company does not record as rebate revenue any rebates that are passed through to its clients. Total rebate revenues for the years ended December 31, 2012, 2013 and 2014 were $40.2 million, $34.8 million and $43.6 million, respectively.
	In relation to the Company's PBM business, the Company administers rebate programs through which it receives rebates from pharmaceutical manufacturers that are shared with its customers. The Company recognizes rebates when the Company is entitled to them and when the amounts of the rebates are determinable. The amount recorded for rebates earned by the Company from the pharmaceutical manufacturers are recorded as a reduction of cost of goods sold.
	PBM and Dispensing Revenue
	Pharmacy Benefit Management Revenue. The Company recognizes PBM revenue, which consists of a negotiated prescription price (ingredient cost plus dispensing fee), co-payments collected by the pharmacy and any associated administrative fees, when claims are adjudicated. The Company recognizes PBM revenue on a gross basis (i.e. including drug costs and co-payments) as it is acting as the principal in the arrangement and is contractually obligated to its clients and network pharmacies, which is a primary indicator of gross reporting. In addition, the Company is solely responsible for the claims adjudication process, negotiating the prescription price for the pharmacy, collection of payments from the client for drugs dispensed by the pharmacy, and managing the total prescription drug relationship with the client's members. If the Company enters into a contract where it is only an administrator, and does not assume any of the risks previously noted, revenue will be recognized on a net basis. Prior to the year ended December 31, 2013 the Company had no PBM business. PBM revenues were $106.7 million and $575.7 million for the years ended December 31, 2013 and 2014, respectively.
	Dispensing Revenue. The Company recognizes dispensing revenue, which includes the co-payments received from members of the health plans the Company serves, when the specialty pharmaceutical drugs are shipped. At the time of shipment, the earnings process is complete; the obligation of the Company's customer to pay for the specialty pharmaceutical drugs is fixed, and, due to the nature of the product, the member may neither return the specialty pharmaceutical drugs nor receive a refund. Revenues from the dispensing of specialty pharmaceutical drugs on behalf of health plans were $350.3 million, $376.6 million and $216.0 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	Significant Customers
	Consolidated Company
	Through March 31, 2014, the Company provided behavioral healthcare management and other related services to approximately 680,000 members in Maricopa County, Arizona as the Regional Behavioral Health Authority ("RBHA") for GSA6 ("Maricopa County") pursuant to a contract with the State of Arizona (the "Maricopa Contract"). The Maricopa Contract was for the management of the publicly funded behavioral health system that delivered mental health, substance abuse and crisis services for adults, youth, and children. The Maricopa Contract terminated on March 31, 2014. The Maricopa Contract generated net revenues of $758.3 million, $755.0 million and $216.6 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	The Company provides behavioral healthcare management and other related services to members in the state of Iowa pursuant to contracts with the State of Iowa (the "Iowa Contracts"). The Iowa Contracts generated net revenues that exceeded, in the aggregate, ten percent of net revenues for the consolidated Company for the year ended December 31, 2014. The Company currently has two contracts; the Iowa Medicaid Contract and Iowa Medicaid Integrated Health Home Provider Agreement ("IHH Agreement"). Under the Iowa Medicaid Contract, the Company is responsible for providing managed mental health and substance abuse treatment to enrollees under a Medicaid 1915(b) waiver, as well as substance abuse treatment services plan funded by federal block grant and state appropriations under the authority of the Iowa Department of Public Health. The Iowa Health and Wellness Plan for members who qualify as an "exempt individual", as defined in 441 of the Iowa Administrative Code, were also added to the contract on January 1, 2014. The latest Iowa Medicaid Contract began on January 1, 2010 and extends through June 30, 2015 unless sooner terminated by the parties. The Iowa Department of Human Services and the Iowa Department of Public Health has the right to terminate the Iowa Medicaid Contract upon thirty days notice for any reason or no reason at all. We expect that the Iowa Medicaid Contract will be extended to coincide with the start date of new Iowa High Quality Healthcare Initiative, as discussed below, however there can be no assurance that the Iowa Medicaid Contract will be extended. Under the IHH Agreement, the Company establishes a health home for individuals identified with serious and persistent mental illness through enrolled provider organizations capable of providing enhanced care. The IHH Agreement began on July 1, 2013 and extends through June 30, 2016 unless sooner terminated by either party with 60 days notice for any reason or no reason at all. The IHH program is part of the new Iowa High Quality Healthcare Initiative and we expect that the end of the IHH agreement will coincide with the start date of the new initiative. The Iowa Contracts generated net revenues of $240.2 million, $321.1 million and $465.0 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	On February 16, 2015 the Iowa Department of Human Services (the "Agency") released the Iowa High Quality Healthcare Initiative Request for Proposal ("RFP"). The Agency intends to contract on a statewide basis with two to four successful bidders with a demonstrated capacity to coordinate care and provide quality outcomes for the Medicaid and Children's Health Insurance Program ("CHIP") populations. The program will enroll the majority of the Iowa Medicaid and CHIP populations and will also provide services for individuals qualifying for Iowa Department of Public Health ("IDPH") funded substance abuse services. The anticipated start of the contract is January 1, 2016 for an initial period of three years and the ability for the Agency to extend the contract for two additional two year terms. The RFP includes the services provided by the Company's current Iowa Contracts. The Company intends to submit a proposal on this RFP. There can be no assurance that the Company will be awarded a contract pursuant to the RFP, or that the terms of any contract awarded pursuant to the RFP will be similar to the current Iowa Contracts.
	By Segment
	In addition to the Maricopa Contract and the Iowa Contracts previously discussed, the following customers generated in excess of ten percent of net revenues for the respective segment for the years ended December 31, 2012, 2013 and 2014 (in thousands):

	Segment		Term Date		2012			2013			2014
	Commercial
	Customer A		June 30, 2014(1)			192,415			207,080			110,153
	Customer A		June 30, 2014(1)		$	192,415		$	207,080		$	110,153
	Customer B		December 31, 2019			134,885			141,444			184,981
	Customer C		August 14, 2017			12,722	*		70,390	*		107,247
	Customer D		December 14, 2013(1)			118,351			74,203	*		—
	Customer E		December 31, 2017			67,959	*		71,085	*		67,426
	Public Sector
	Public Sector
	Customer F		December 31, 2018(2)			133,864			128,607			253,661
	Customer F		December 31, 2018(2)			133,864	*		128,607	*		253,661
	Specialty Solutions
	Specialty Solutions
	Customer G		December 31, 2017(3)			117,739			130,895			146,930
	Customer H		June 30, 2016(4)			60,094			55,078			33,492	*
	Customer I		June 30, 2017			57,455			61,838			76,580
	Customer A		November 30, 2016			1,339	*		6,399	*		54,413
	Customer J		January 31, 2016			38,366			47,311			52,310
	Pharmacy Management
	Pharmacy Management
	Customer K		April 4, 2015 to December 31, 2015(5)			129,209			133,724			123,812
	Customer L		December 31, 2013(6)			60,350			59,125	*		14,312	*
	Customer E		December 31, 2013(6)			73,785			92,647			2,612	*
	Customer M		March 31, 2014(1)(7)			69,090			66,153	*		18,055	*
	Customer N		December 16, 2016			—			—			171,936


	*	Revenue amount did not exceed ten percent of net revenues for the respective segment for the year presented. Amount is shown for comparative purposes only.
	-1	The contract has terminated.
	-2	The Company had behavioral healthcare contracts with various areas in the State of Florida (the "Florida Areas") which were part of the Florida Medicaid program. The State of Florida implemented a new system of mandated managed care through which Medicaid enrollees will receive integrated healthcare services, and has phased out the behavioral healthcare programs under which the Florida Areas' contracts operated. The Company has a contract with the State of Florida to provide integrated healthcare services under the new program.
	-3	On December 31, 2014, this contract was amended and extended through December 31, 2017. Historically the Company provided services on a risk basis. Under the amended contract, the funding arrangement will be a combination of risk and ASO based services.
	-4	The contract transitioned from risk to ASO based services effective July 1, 2014.
	-5	The customer has more than one contract. The individual contracts are scheduled to terminate at various points during the time period indicated above.
	-6	The contract has terminated, however, the Company continues to provide services as the contract is transitioned to the new vendor.
	-7	This customer represented a subcontract with a Public Sector customer and was eliminated in consolidation.
	Concentration of Business
	The Company also has a significant concentration of business with various counties in the State of Pennsylvania (the "Pennsylvania Counties") which are part of the Pennsylvania Medicaid program. Net revenues from the Pennsylvania Counties in the aggregate totaled $354.1 million, $359.0 million and $369.9 million for the years ended December 31, 2012, 2013 and 2014, respectively.
	The Company's contracts with customers typically have terms of one to three years, and in certain cases contain renewal provisions (at the customer's option) for successive terms of between one and two years (unless terminated earlier). Substantially all of these contracts may be immediately terminated with cause and many of the Company's contracts are terminable without cause by the customer or the Company either upon the giving of requisite notice and the passage of a specified period of time (typically between 60 and 180 days) or upon the occurrence of other specified events. In addition, the Company's contracts with federal, state and local governmental agencies generally are conditioned on legislative appropriations. These contracts generally can be terminated or modified by the customer if such appropriations are not made.

Income Taxes	Income Taxes
	The Company files a consolidated federal income tax return for the Company and its eighty-percent or more owned subsidiaries, and a consolidated federal income tax return for AlphaCare of New York, Inc. ("AlphaCare") and its parent, AlphaCare Holdings, Inc. ("AlphaCare Holdings"). The Company and its subsidiaries also file income tax returns in various state and local jurisdictions.
	The Company estimates income taxes for each of the jurisdictions in which it operates. This process involves determining both permanent and temporary differences resulting from differing treatment for tax and book purposes. Deferred tax assets and/or liabilities are determined by multiplying the temporary differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled. The Company establishes valuation allowances against deferred tax assets if it is more likely than not that the deferred tax asset will not be realized. The need for a valuation allowance is determined based on the evaluation of various factors, including expectations of future earnings and management's judgment. The effect of a change in tax rates on deferred taxes is recognized in income in the period that includes the enactment date.
	Reversals of both valuation allowances and unrecognized tax benefits are recorded in the period they occur, typically as reductions to income tax expense. However, reversals of unrecognized tax benefits related to deductions for stock compensation in excess of the related book expense are recorded as increases in additional paid-in capital. To the extent reversals of unrecognized tax benefits cannot be specifically traced to these excess deductions due to complexities in the tax law, the Company records the tax benefit for such reversals to additional paid-in-capital on a pro-rata basis.
	The Company recognizes interim period income taxes by estimating an annual effective tax rate and applying it to year-to-date results. The estimated annual effective tax rate is periodically updated throughout the year based on actual results to date and an updated projection of full year income. Although the effective tax rate approach is generally used for interim periods, taxes on significant, unusual and infrequent items are recognized at the statutory tax rate entirely in the period the amounts are realized.

Cash and Cash Equivalents	Cash and Cash Equivalents
	Cash equivalents are short-term, highly liquid interest-bearing investments with maturity dates of three months or less when purchased, consisting primarily of money market instruments. At December 31, 2014, the Company's excess capital and undistributed earnings for the Company's regulated subsidiaries of $65.5 million are included in cash and cash equivalents.

Restricted Assets	Restricted Assets
	The Company has certain assets which are considered restricted for: (i) the payment of claims under the terms of certain managed care contracts; (ii) regulatory purposes related to the payment of claims in certain jurisdictions; and (iii) the maintenance of minimum required tangible net equity levels for certain of the Company's subsidiaries. Significant restricted assets of the Company as of December 31, 2013 and 2014 were as follows (in thousands):

			2013			2014
	Restricted cash		$	236,696		$	215,325
	Restricted short-term investments			117,674			132,808
	Restricted deposits (included in other current assets)			25,009			30,620
	Restricted long-term investments			32,430			43,293

	Total		$	411,809		$	422,046





Fair Value Measurements	Fair Value Measurements
	The Company currently does not have non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis. Financial assets and liabilities are to be measured using inputs from the three levels of the fair value hierarchy, which are as follows:
	Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
	Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
	Level 3—Unobservable inputs that reflect the Company's assumptions about the assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including the Company's data.
	In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company's financial assets and liabilities that are required to be measured at fair value as of December 31, 2013 and 2014 (in thousands):

			Fair Value Measurements
			at December 31, 2013
			Level 1			Level 2			Level 3			Total
	Assets
	Cash and Cash Equivalents(1)		$	—		$	101,028		$	—		$	101,028
	Restricted Cash(2)			—			128,318			—			128,318
	Investments:
	Investments:
	U.S. Government and agency securities			1,129			—			—			1,129
	Obligations of government-sponsored enterprises(3)			—			8,440			—			8,440
	Corporate debt securities			—			198,594			—			198,594
	Certificates of deposit			—			150			—			150

	Total assets held at fair value		$	1,129		$	436,530		$	—		$	437,659




			Fair Value Measurements
			at December 31, 2014
			Level 1			Level 2			Level 3			Total
	Assets
	Cash and Cash Equivalents(4)		$	—		$	139,280		$	—		$	139,280
	Restricted Cash(5)			—			65,992			—			65,992
	Investments:
	Investments:
	U.S. Government and agency securities			4,303			—			—			4,303
	Obligations of government-sponsored enterprises(3)			—			15,315			—			15,315
	Corporate debt securities			—			246,886			—			246,886
	Certificates of deposit			—			1,150			—			1,150

	Total assets held at fair value		$	4,303		$	468,623		$	—		$	472,926


	Liabilities
	Contingent consideration		$	—		$	—		$	58,153		$	58,153

	Total liabilities held at fair value		$	—		$	—		$	58,153		$	58,153




	-1	Excludes $102.2 million of cash held in bank accounts by the Company.
	-2	Excludes $108.4 million of restricted cash held in bank accounts by the Company.
	-3	Includes investments in notes issued by the Federal Home Loan Bank.
	-4	Excludes $116.0 million of cash held in bank accounts by the Company.
	-5	Excludes $149.3 million of restricted cash held in bank accounts by the Company.
	For the years ended December 31, 2013 and 2014, the Company did not transfer any assets between fair value measurement levels.
	The carrying values of financial instruments, including accounts receivable and accounts payable, approximate their fair values due to their short-term maturities. The estimated fair value of the Company's term loan of $246.9 million as of December 31, 2014 was based on current interest rates for similar types of borrowings and is in Level 2 of the fair value hierarchy. The estimated fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future.
	All of the Company's investments are classified as "available-for-sale" and are carried at fair value.
	The contingent consideration liability reflects the fair value of potential future payments related to the CDMI, LLC ("CDMI") and Cobalt Therapeutics, LLC ("Cobalt") acquisitions. The CDMI purchase agreement provides for potential contingent payments up to a maximum aggregate amount of $165.0 million. The potential future payments are contingent upon CDMI meeting certain client retention, client conversion, and gross profit milestones through December 31, 2016. The Cobalt purchase agreement provides for potential contingent payments up to a maximum aggregate amount of $6.0 million. The potential future payments are contingent upon engagement of new members and new contract execution through June 30, 2017.
	The fair value of contingent consideration is determined based on probabilities of payment, projected payment dates, discount rates, and projected revenues, gross profits, client base, member engagement, and new contract execution. The projected revenues, gross profits, client base, member engagement, and new contract execution are derived from the Company's latest internal operational forecasts. The Company used a probability weighted discounted cash flow method to arrive at the fair value of the contingent consideration. Changes in the operational forecasts, probabilities of payment, discount rates, or projected payment dates may result in a change in the fair value measurement. Any changes in the fair value measurement are reflected as income or expense in the consolidated statements of income. As the fair value measurement for the contingent consideration is based on inputs not observed in the market, these measurements are classified as Level 3 measurements as defined by fair value measurement guidance.
	The following unobservable inputs were used in the fair value measurement of contingent consideration: (i) discount rate of 14.5 percent; (ii) probabilities of payment of approximately zero to 85 percent for CDMI and 5 to 70 percent for Cobalt; and (iii) projected payment dates of 2015 to 2017. As of the acquisition date, the Company estimated undiscounted future contingent payments of $61.7 million and $4.2 million for CDMI and Cobalt, respectively. As of December 31, 2014, the Company estimated undiscounted future contingent payments of $65.7 million and $4.2 million for CDMI and Cobalt, respectively. The increase for CDMI is mainly a result of changes in operational forecasts and probabilities of payment. As of December 31, 2014, the fair value of the short term and long term contingent consideration was $8.3 million and $49.8 million, respectively, and is included in accrued liabilities and contingent consideration, respectively, in the consolidated balance sheet. The change in the fair value of the contingent consideration was $9.3 million for the year ended December 31, 2014, $6.2 million and $3.1 million of which was recorded in the consolidated statements of income as direct service costs and other operating expenses, and as interest expense, respectively. The increase was mainly a result of the changes in the present value and estimated undiscounted liability, as noted above.
	The following table summarizes the Company's liability for contingent consideration (in thousands):

			December 31,
			2014
Balance as of beginning of period		$	—
Acquisition of CDMI			45,778
Acquisition of Cobalt			3,071
Changes in fair value			9,304

Balance as of end of period		$	58,153




Investments	Investments
	All of the Company's investments are classified as "available-for-sale" and are carried at fair value. Securities which have been classified as Level 1 are measured using quoted market prices while those which have been classified as Level 2 are measured using quoted prices for identical assets and liabilities in markets that are not active. The Company's policy is to classify all investments with contractual maturities within one year as current. Investment income is recognized when earned and reported net of investment expenses. Net unrealized holding gains or losses are excluded from earnings and are reported, net of tax, as "accumulated other comprehensive income (loss)" in the accompanying consolidated balance sheets and consolidated statements of comprehensive income until realized, unless the losses are deemed to be other-than-temporary. Realized gains or losses, including any provision for other-than-temporary declines in value, are included in the consolidated statements of income.
	If a debt security is in an unrealized loss position and the Company has the intent to sell the debt security, or it is more likely than not that the Company will have to sell the debt security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to other-than-temporary impairment losses recognized in income in the consolidated statements of income. For impaired debt securities that the Company does not intend to sell or it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in other-than-temporary impairment losses recognized in income in the consolidated statements of income and the non-credit component of the other-than-temporary impairment is recognized in other comprehensive income.
	The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the debt security. The net present value is calculated by discounting the best estimate of projected future cash flows at the effective interest rate implicit in the debt security at the date of acquisition. Cash flow estimates are driven by assumptions regarding probability of default, including changes in credit ratings, and estimates regarding timing and amount of recoveries associated with a default. Furthermore, unrealized losses entirely caused by non-credit related factors related to debt securities for which the Company expects to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive income.
	As of December 31, 2013 and 2014, there were no unrealized losses that the Company believed to be other-than-temporary. No realized gains or losses were recorded for the years ended December 31, 2012, 2013, or 2014. The following is a summary of short-term and long-term investments at December 31, 2013 and 2014 (in thousands):

			December 31, 2013
			Amortized			Gross			Gross			Estimated
			Cost			Unrealized			Unrealized			Fair Value
						Gains			Losses
	U.S. Government and agency securities		$	1,129		$	—		$	—		$	1,129
	Obligations of government-sponsored enterprises(1)			8,441			2			(3	)		8,440
	Corporate debt securities			198,748			18			(172	)		198,594
	Certificates of deposit			150			—			—			150

	Total investments at December 31, 2013		$	208,468		$	20		$	(175	)	$	208,313



			December 31, 2014
			Amortized			Gross			Gross			Estimated
			Cost			Unrealized			Unrealized			Fair Value
						Gains			Losses
	U.S. Government and agency securities		$	4,305		$	—		$	(2	)	$	4,303
	Obligations of government-sponsored enterprises(1)			15,318			1			(4	)		15,315
	Corporate debt securities			247,118			8			(240	)		246,886
	Certificates of deposit			1,150			—			—			1,150

	Total investments at December 31, 2014		$	267,891		$	9		$	(246	)	$	267,654




	-1	Includes investments in notes issued by the Federal Home Loan Bank.
	The maturity dates of the Company's investments as of December 31, 2014 are summarized below (in thousands):

			Amortized			Estimated
			Cost			Fair Value
	2015		$	224,509		$	224,361
	2016			43,382			43,293

	Total investments at December 31, 2014		$	267,891		$	267,654




Accounts Receivable	Accounts Receivable
	The Company's accounts receivable consists of amounts due from customers throughout the United States. Collateral is generally not required. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. Management believes the allowance for doubtful accounts is adequate to provide for normal credit losses.

Concentration of Credit Risk	Concentration of Credit Risk
	Accounts receivable subjects the Company to a concentration of credit risk with third party payors that include health insurance companies, managed healthcare organizations, healthcare providers and governmental entities.
	The Company maintains cash and cash equivalents balances at financial institutions and are insured by the Federal Deposit Insurance Corporation ("FDIC"). At times, balances in certain bank accounts may exceed the FDIC insured limits.

Pharmaceutical Inventory	Pharmaceutical Inventory
	Pharmaceutical inventory consists solely of finished goods (primarily prescription drugs) and are stated at the lower of first-in first-out cost or market.

Long-lived Assets	Long-lived Assets
	Long-lived assets, including property and equipment and intangible assets to be held and used, are currently reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount should be addressed. Impairment is determined by comparing the carrying value of these long-lived assets to management's best estimate of the future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The cash flow projections used to make this assessment are consistent with the cash flow projections that management uses internally in making key decisions. In the event an impairment exists, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the asset, which is generally determined by using quoted market prices or the discounted present value of expected future cash flows.

Property and Equipment	Property and Equipment
	Property and equipment is stated at cost, except for assets that have been impaired, for which the carrying amount has been reduced to estimated fair value. Expenditures for renewals and improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. The Company capitalizes costs incurred to develop internal-use software during the application development stage. Capitalization of software development costs occurs after the preliminary project stage is complete, management authorizes the project, and it is probable that the project will be completed and the software will be used for the function intended. Amortization of capital lease assets is included in depreciation expense and is included in accumulated depreciation as reflected in the table below. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets, which is generally two to ten years for building improvements (or the lease term, if shorter), three to fifteen years for equipment and three to five years for capitalized internal-use software. The net capitalized internal use software as of December 31, 2013 and 2014 was $78.8 million and $85.6 million, respectively. Depreciation expense was $50.8 million, $61.4 million and $68.3 million for the years ended December 31, 2012, 2013 and 2014, respectively. Included in depreciation expense for the years ended December 31, 2012, 2013 and 2014 was $28.8 million, $34.8 million and $40.9 million, respectively, related to capitalized internal use software.
	Property and equipment, net, consisted of the following at December 31, 2013 and 2014 (in thousands):

			2013			2014
	Building improvements		$	12,074		$	13,416
	Equipment			180,540			185,391
	Capital leases—property			26,945			26,945
	Capital leases—equipment			2,794			7,883
	Capitalized internal-use software			304,146			351,978

				526,499			585,613
	Accumulated depreciation			(354,166	)		(413,697	)

	Property and equipment, net		$	172,333		$	171,916




Goodwill	Goodwill
	The Company is required to test its goodwill for impairment on at least an annual basis. The Company has selected October 1 as the date of its annual impairment test. The goodwill impairment test is a two-step process that requires management to make judgments in determining what assumptions to use in the calculation. The first step of the process consists of estimating the fair value of each reporting unit with goodwill based on various valuation techniques, with the primary technique being a discounted cash flow analysis, which requires the input of various assumptions with respect to revenues, operating margins, growth rates and discount rates. The estimated fair value for each reporting unit is compared to the carrying value of the reporting unit, which includes goodwill. If the estimated fair value is less than the carrying value, a second step is performed to compute the amount of the impairment by determining an "implied fair value" of goodwill. The determination of a reporting unit's "implied fair value" of goodwill requires the Company to allocate the estimated fair value of the reporting unit to the assets and liabilities of the reporting unit. Any unallocated fair value represents the "implied fair value" of goodwill, which is compared to its corresponding carrying value.
	Goodwill is tested for impairment at a level referred to as a reporting unit, with the Company's reporting units with goodwill as of December 31, 2014 comprised of Health Plan, Specialty Solutions, Pharmacy Management, and Magellan Complete Care.
	The fair value of the Health Plan (a component of the Commercial segment), Specialty Solutions and Magellan Complete Care (a component of the Public Sector segment) reporting units were determined using a discounted cash flow method. This method involves estimating the present value of estimated future cash flows utilizing a risk adjusted discount rate. Key assumptions for this method include cash flow projections, terminal growth rates and discount rates.
	The fair value of the Pharmacy Management reporting unit was determined using discounted cash flow, guideline company and similar transaction methods. Key assumptions for the discounted cash flow method are consistent with those described above. For the guideline company method, revenue and earnings before interest, taxes, depreciation, and amortization ("EBITDA") multiples for guideline companies were applied to the reporting unit's pro forma revenue and EDITDA for 2014, which represents actual results for the nine-month period ended September 30, 2014 and projected results for the three-month period ended December 31, 2014, and to the reporting unit's projected revenue and EBITDA for 2015. For the similar transaction method, revenue and EBITDA multiples based on merger and acquisition transactions for similar companies were applied to the reporting unit's pro forma revenue and EBITDA for 2014, which represents actual results for the nine-month period ended September 30, 2014 and projected results for the three-month period ended December 31, 2014. The weighting applied to the fair values determined using the discounted cash flow, guideline company and similar transaction methods to determine an overall fair value for the Pharmacy Management reporting unit was 75 percent, 22.5 percent and 2.5 percent, respectively. The weighting of each of the methods described above was based on the relevance of the approach. A change in the weighting would not change the outcome of the first step of the impairment test.
	As a result of the first step of the 2014 annual goodwill impairment analysis, the fair value of each reporting unit with goodwill exceeded its carrying value with a range of approximately 40 percent to 65 percent. Therefore, the second step was not necessary.
	Goodwill for each of the Company's reporting units with goodwill at December 31, 2013 and 2014 were as follows (in thousands):

			2013			2014
	Health Plan		$	120,485		$	129,042
	Specialty Solutions			104,549			104,549
	Pharmacy Management			242,290			311,636
	Magellan Complete Care			20,882			20,879

	Total		$	488,206		$	566,106


	The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2014 are reflected in the table below (in thousands):

			2013			2014
	Balance as of beginning of period		$	426,939		$	488,206
	Acquisition of Partners Rx(1)			40,385			254
	Acquisition of AlphaCare Holdings(1)			20,882			(3	)
	Acquisition of CDMI			—			69,092
	Acquisition of Cobalt			—			8,557

	Balance as of end of period		$	488,206		$	566,106




Intangible Assets	Intangible Assets
	The following is a summary of intangible assets at December 31, 2013 and 2014, and the estimated useful lives for such assets (in thousands):

			December 31, 2013
	Asset		Estimated		Gross			Accumulated			Net
			Useful Life		Carrying			Amortization			Carrying
					Amount						Amount
	Customer agreements and lists		2.5 to 18 years		$	163,990		$	(100,482	)	$	63,508
	Provider networks and other		1 to 16 years			11,593			(5,407	)		6,186

					$	175,583		$	(105,889	)	$	69,694




			December 31, 2014
	Asset		Estimated		Gross			Accumulated			Net
			Useful Life		Carrying			Amortization			Carrying
					Amount						Amount
	Customer agreements and lists		2.5 to 18 years		$	249,390		$	(121,788	)	$	127,602
	Provider networks and other		1 to 16 years			13,013			(6,897	)		6,116

					$	262,403		$	(128,685	)	$	133,718


	Amortization expense was $9.7 million, $10.6 million and $22.8 million for the years ended December 31, 2012, 2013 and 2014, respectively. The Company estimates amortization expense will be $25.1 million, $20.8 million, $16.7 million, $15.3 million and $15.2 million for the years ending December 31, 2015, 2016, 2017, 2018, and 2019, respectively.

Cost of Care, Medical Claims Payable and Other Medical Liabilities	Cost of Care, Medical Claims Payable and Other Medical Liabilities
	Cost of care is recognized in the period in which members receive managed healthcare services. In addition to actual benefits paid, cost of care in a period also includes the impact of accruals for estimates of medical claims payable. Medical claims payable represents the liability for healthcare claims reported but not yet paid and claims incurred but not yet reported ("IBNR") related to the Company's managed healthcare businesses. Such liabilities are determined by employing actuarial methods that are commonly used by health insurance actuaries and that meet actuarial standards of practice.
	The IBNR portion of medical claims payable is estimated based on past claims payment experience for member groups, enrollment data, utilization statistics, authorized healthcare services and other factors. This data is incorporated into contract-specific actuarial reserve models and is further analyzed to create "completion factors" that represent the average percentage of total incurred claims that have been paid through a given date after being incurred. Factors that affect estimated completion factors include benefit changes, enrollment changes, shifts in product mix, seasonality influences, provider reimbursement changes, changes in claims inventory levels, the speed of claims processing and changes in paid claim levels. Completion factors are applied to claims paid through the financial statement date to estimate the ultimate claim expense incurred for the current period. Actuarial estimates of claim liabilities are then determined by subtracting the actual paid claims from the estimate of the ultimate incurred claims. For the most recent incurred months (generally the most recent two months), the percentage of claims paid for claims incurred in those months is generally low. This makes the completion factor methodology less reliable for such months. Therefore, incurred claims for any month with a completion factor that is less than 70 percent are generally not projected from historical completion and payment patterns; rather they are projected by estimating claims expense based on recent monthly estimated cost incurred per member per month times membership, taking into account seasonality influences, benefit changes and healthcare trend levels, collectively considered to be "trend factors."
	Medical claims payable balances are continually monitored and reviewed. If it is determined that the Company's assumptions in estimating such liabilities are significantly different than actual results, the Company's results of operations and financial position could be impacted in future periods. Adjustments of prior period estimates may result in additional cost of care or a reduction of cost of care in the period an adjustment is made. Further, due to the considerable variability of healthcare costs, adjustments to claim liabilities occur each period and are sometimes significant as compared to the net income recorded in that period. Prior period development is recognized immediately upon the actuary's judgment that a portion of the prior period liability is no longer needed or that additional liability should have been accrued. The following table presents the components of the change in medical claims payable for the years ended December 31, 2012, 2013 and 2014 (in thousands):

			2012			2013			2014
	Claims payable and IBNR, beginning of period		$	157,099		$	222,929		$	242,229
	Cost of care:
	Current year			2,076,190			2,264,276			2,097,395
	Prior years(3)			(4,300	)		(31,300	)		(8,800	)

	Total cost of care			2,071,890			2,232,976			2,088,595

	Claim payments and transfers to other medical liabilities(1):
	Current year			1,877,459			2,053,274			1,845,325
	Prior years			128,601			160,402			206,696

	Total claim payments and transfers to other medical liabilities			2,006,060			2,213,676			2,052,021

	Claims payable and IBNR, end of period			222,929			242,229			278,803
	Withhold receivables, end of period(2)			(24,500	)		(13,888	)		(321	)

	Medical claims payable, end of period		$	198,429		$	228,341		$	278,482




	-1	For any given period, a portion of unpaid medical claims payable could be covered by reinvestment liability (discussed below) and may not impact the Company's results of operations for such periods.
	-2	Medical claims payable is offset by customer withholds from capitation payments in situations in which the customer has the contractual requirement to pay providers for care incurred.
	-3	Favorable development in 2012, 2013, and 2014 was $4.3 million, $31.3 million, and $8.8 million, respectively.
	Favorable prior year care development for 2012 was related to a favorable contract settlement of covered services, as well as lower medical trends and faster claims completion than originally assumed.
	Development for 2013 was impacted by several factors, including approximately $15.1 million of adjustments resulting from an annual reconciliation process with certain providers, $8.3 million of adjustments related to new contracts in 2012 for which we did not have historical claim payment patterns, and $7.9 million related to faster claims completion rates and lower medical cost trends than originally estimated. The annual reconciliation process for one of our Public Sector contracts, which contract terminated March 31, 2014, identified block payments to providers which exceeded the cost of care incurred by such providers; these particular provider contracts required the providers to return such excess block payments to the Company.
	Favorable prior year care development for 2014 was related to lower medical trends and faster claims completion than originally assumed in all business segments.
	Actuarial standards of practice require that claim liabilities be adequate under moderately adverse circumstances. Adverse circumstances are situations in which the actual claims experience could be higher than the otherwise estimated value of such claims. In many situations, the claims paid amount experienced will be less than the estimate that satisfies the actuarial standards of practice. Any prior period favorable cost of care development related to a lack of moderately adverse conditions is excluded from "Cost of Care—Prior Years" adjustments, as a similar provision for moderately adverse conditions is established for current year cost of care liabilities and therefore does not generally impact net income.
	Due to the existence of risk sharing and reinvestment provisions in certain customer contracts, principally in the Public Sector segment, a change in the estimate for medical claims payable does not necessarily result in an equivalent impact on cost of care.
	The Company believes that the amount of medical claims payable is adequate to cover its ultimate liability for unpaid claims as of December 31, 2014; however, actual claims payments may differ from established estimates.
	Other medical liabilities consist primarily of "reinvestment" payables under certain managed healthcare contracts with Medicaid customers and "profit share" payables under certain risk-based contracts. Under a contract with reinvestment features, if the cost of care is less than certain minimum amounts specified in the contract (usually as a percentage of revenue), the Company is required to "reinvest" such difference in behavioral healthcare programs when and as specified by the customer or to pay the difference to the customer for their use in funding such programs. Under a contract with profit share provisions, if the cost of care is below certain specified levels, the Company will "share" the cost savings with the customer at the percentages set forth in the contract. In addition, certain contracts include provisions to provide the Company additional funding if the cost of care is above the specified levels.
	Other medical liabilities also include amount payable to pharmacies for claims that have been adjudicated by the Company but not yet paid.

Advertising costs	Advertising Costs
	Advertising costs consist primarily of printed media services, event sponsorships, and promotional items, which are expensed as incurred. Advertising expense was approximately $2.0 million, $2.3 million, and $2.7 million for the fiscal years ended December 31, 2012, 2013, and 2014, respectively.

Accrued Liabilities	Accrued Liabilities
	As of December 31, 2013 the only individual current liability that exceeded five percent of total current liabilities related to accrued employee compensation liabilities of $40.2 million. As of December 31, 2014, the only individual current liabilities that exceeded five percent of total current liabilities related to accrued employee compensation liabilities of $47.0 million and deferred revenue of $29.8 million.

Net Income per Common Share	Net Income per Common Share attributable to Magellan Health, Inc.
	Net income per common share attributable to Magellan Health, Inc. is computed based on the weighted average number of shares of common stock and common stock equivalents outstanding during the period (see Note 6—"Stockholders' Equity").

Redeemable Non-controlling Interest	Redeemable Non-Controlling Interest
	As of December 31, 2014, the Company held a 75% equity interest in AlphaCare Holdings. The other shareholders of AlphaCare Holdings have the right to exercise put options, requiring the Company to purchase up to 50% of the remaining shares prior to January 1, 2017 provided certain membership levels are attained. After December 31, 2016 the other shareholders of AlphaCare Holdings have the right to exercise put options requiring the Company to purchase all or any portion of the remaining shares. In addition, after December 31, 2016 the Company has the right to purchase all remaining shares. Non-controlling interests with redemption features, such as put options, that are not solely within the Company's control are considered redeemable non-controlling interest. Redeemable non-controlling interest is considered to be temporary and is therefore reported in a mezzanine level between liabilities and stockholders' equity on the Company's consolidated balance sheet at the greater of the initial carrying amount adjusted for the non-controlling interest's share of net income or loss or its redemption value. As of December 31, 2013, the Company recorded $10.6 million of redeemable non-controlling interest in relation to the acquisition. The carrying value of the non-controlling interest as of December 31, 2014 was $6.0 million. The $4.6 million reduction in carrying value for the year ended December 31, 2014 is a result of operating losses, partially offset by the impact of additional capital provided by the Company. The Company recognizes changes in the redemption value on a quarterly basis and adjusts the carrying amount of the non-controlling interest to equal the redemption value at the end of each reporting period. Under this method, this is viewed at the end of the reporting period as if it were also the redemption date for the non-controlling interest. The Company will reflect redemption value adjustments in the earnings per share calculation if redemption value is in excess of the carrying value of the non-controlling interest. As of December 31, 2014, the carrying value of the non-controlling interest exceeded the redemption value and therefore no adjustment to the carrying value was required.

Stock Compensation	Stock Compensation
	At December 31, 2013 and 2014, the Company had equity-based employee incentive plans, which are described more fully in Note 6—"Stockholders' Equity". In addition, the Company issued restricted stock awards associated with the Partners Rx and CDMI acquisitions, which are also described more fully in Note 6—"Stockholders' Equity". The Company uses the Black-Scholes-Merton formula to estimate the fair value of substantially all stock options granted to employees, and recorded stock compensation expense of $17.8 million, $21.3 million and $40.6 million for the years ended December 31, 2012, 2013 and 2014, respectively. As stock compensation expense recognized in the consolidated statements of income for the years ended December 31, 2012, 2013 and 2014 is based on awards ultimately expected to vest, it has been reduced for annual estimated forfeitures of four percent. If the actual number of forfeitures differs from those estimated, additional adjustments to compensation expense may be required in future periods. If vesting of an award is conditioned upon the achievement of performance goals, compensation expense during the performance period is estimated using the most probable outcome of the performance goals, and adjusted as the expected outcome changes. The Company recognizes compensation costs for awards that do not contain performance conditions on a straight-line basis over the requisite service period, which is generally the vesting term of three years. For restricted stock units that include performance conditions, stock compensation is recognized using an accelerated method over the vesting period.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	12 Months Ended
Summary of Significant Accounting Policies (Tables)	Dec. 31, 2014
Summary of Significant Accounting Policies
Schedule of customers generating in excess of ten percent of net revenues for respective segment
	In addition to the Maricopa Contract and the Iowa Contracts previously discussed, the following customers generated in excess of ten percent of net revenues for the respective segment for the years ended December 31, 2012, 2013 and 2014 (in thousands):
	Segment		Term Date		2012			2013			2014
	Commercial
	Customer A		June 30, 2014(1)			192,415			207,080			110,153
	Customer A		June 30, 2014(1)		$	192,415		$	207,080		$	110,153
	Customer B		December 31, 2019			134,885			141,444			184,981
	Customer C		August 14, 2017			12,722	*		70,390	*		107,247
	Customer D		December 14, 2013(1)			118,351			74,203	*		—
	Customer E		December 31, 2017			67,959	*		71,085	*		67,426
	Public Sector
	Public Sector
	Customer F		December 31, 2018(2)			133,864			128,607			253,661
	Customer F		December 31, 2018(2)			133,864	*		128,607	*		253,661
	Specialty Solutions
	Specialty Solutions
	Customer G		December 31, 2017(3)			117,739			130,895			146,930
	Customer H		June 30, 2016(4)			60,094			55,078			33,492	*
	Customer I		June 30, 2017			57,455			61,838			76,580
	Customer A		November 30, 2016			1,339	*		6,399	*		54,413
	Customer J		January 31, 2016			38,366			47,311			52,310
	Pharmacy Management
	Pharmacy Management
	Customer K		April 4, 2015 to December 31, 2015(5)			129,209			133,724			123,812
	Customer L		December 31, 2013(6)			60,350			59,125	*		14,312	*
	Customer E		December 31, 2013(6)			73,785			92,647			2,612	*
	Customer M		March 31, 2014(1)(7)			69,090			66,153	*		18,055	*
	Customer N		December 16, 2016			—			—			171,936


	*	Revenue amount did not exceed ten percent of net revenues for the respective segment for the year presented. Amount is shown for comparative purposes only.
	-1	The contract has terminated.
	-2	The Company had behavioral healthcare contracts with various areas in the State of Florida (the "Florida Areas") which were part of the Florida Medicaid program. The State of Florida implemented a new system of mandated managed care through which Medicaid enrollees will receive integrated healthcare services, and has phased out the behavioral healthcare programs under which the Florida Areas' contracts operated. The Company has a contract with the State of Florida to provide integrated healthcare services under the new program.
	-3	On December 31, 2014, this contract was amended and extended through December 31, 2017. Historically the Company provided services on a risk basis. Under the amended contract, the funding arrangement will be a combination of risk and ASO based services.
	-4	The contract transitioned from risk to ASO based services effective July 1, 2014.
	-5	The customer has more than one contract. The individual contracts are scheduled to terminate at various points during the time period indicated above.
	-6	The contract has terminated, however, the Company continues to provide services as the contract is transitioned to the new vendor.
	-7	This customer represented a subcontract with a Public Sector customer and was eliminated in consolidation.


Schedule of significant restricted assets	Significant restricted assets of the Company as of December 31, 2013 and 2014 were as follows (in thousands):
			2013			2014
	Restricted cash		$	236,696		$	215,325
	Restricted short-term investments			117,674			132,808
	Restricted deposits (included in other current assets)			25,009			30,620
	Restricted long-term investments			32,430			43,293

	Total		$	411,809		$	422,046




Schedule of fair value of financial assets and liabilities	In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company's financial assets and liabilities that are required to be measured at fair value as of December 31, 2013 and 2014 (in thousands):
			Fair Value Measurements
			at December 31, 2013
			Level 1			Level 2			Level 3			Total
	Assets
	Cash and Cash Equivalents(1)		$	—		$	101,028		$	—		$	101,028
	Restricted Cash(2)			—			128,318			—			128,318
	Investments:
	Investments:
	U.S. Government and agency securities			1,129			—			—			1,129
	Obligations of government-sponsored enterprises(3)			—			8,440			—			8,440
	Corporate debt securities			—			198,594			—			198,594
	Certificates of deposit			—			150			—			150

	Total assets held at fair value		$	1,129		$	436,530		$	—		$	437,659



			Fair Value Measurements
			at December 31, 2014
			Level 1			Level 2			Level 3			Total
	Assets
	Cash and Cash Equivalents(4)		$	—		$	139,280		$	—		$	139,280
	Restricted Cash(5)			—			65,992			—			65,992
	Investments:
	Investments:
	U.S. Government and agency securities			4,303			—			—			4,303
	Obligations of government-sponsored enterprises(3)			—			15,315			—			15,315
	Corporate debt securities			—			246,886			—			246,886
	Certificates of deposit			—			1,150			—			1,150

	Total assets held at fair value		$	4,303		$	468,623		$	—		$	472,926


	Liabilities
	Contingent consideration		$	—		$	—		$	58,153		$	58,153

	Total liabilities held at fair value		$	—		$	—		$	58,153		$	58,153




	-1	Excludes $102.2 million of cash held in bank accounts by the Company.
	-2	Excludes $108.4 million of restricted cash held in bank accounts by the Company.
	-3	Includes investments in notes issued by the Federal Home Loan Bank.
	-4	Excludes $116.0 million of cash held in bank accounts by the Company.
	-5	Excludes $149.3 million of restricted cash held in bank accounts by the Company.


Summary of the Company's liability for contingent consideration	The following table summarizes the Company's liability for contingent consideration (in thousands):
			December 31,
			2014
	Balance as of beginning of period		$	—
	Acquisition of CDMI			45,778
	Acquisition of Cobalt			3,071
	Changes in fair value			9,304

	Balance as of end of period		$	58,153




Summary of short-term and long-term "available-for-sale" investments	The following is a summary of short-term and long-term investments at December 31, 2013 and 2014 (in thousands):
			December 31, 2013
			Amortized			Gross			Gross			Estimated
			Cost			Unrealized			Unrealized			Fair Value
						Gains			Losses
	U.S. Government and agency securities		$	1,129		$	—		$	—		$	1,129
	Obligations of government-sponsored enterprises(1)			8,441			2			(3	)		8,440
	Corporate debt securities			198,748			18			(172	)		198,594
	Certificates of deposit			150			—			—			150

	Total investments at December 31, 2013		$	208,468		$	20		$	(175	)	$	208,313


			December 31, 2014
			Amortized			Gross			Gross			Estimated
			Cost			Unrealized			Unrealized			Fair Value
						Gains			Losses
	U.S. Government and agency securities		$	4,305		$	—		$	(2	)	$	4,303
	Obligations of government-sponsored enterprises(1)			15,318			1			(4	)		15,315
	Corporate debt securities			247,118			8			(240	)		246,886
	Certificates of deposit			1,150			—			—			1,150

	Total investments at December 31, 2014		$	267,891		$	9		$	(246	)	$	267,654




	-1	Includes investments in notes issued by the Federal Home Loan Bank.


Summary of maturity dates of investments	The maturity dates of the Company's investments as of December 31, 2014 are summarized below (in thousands):
			Amortized			Estimated
			Cost			Fair Value
	2015		$	224,509		$	224,361
	2016			43,382			43,293

	Total investments at December 31, 2014		$	267,891		$	267,654




Schedule of net property and equipment	Property and equipment, net, consisted of the following at December 31, 2013 and 2014 (in thousands):
			2013			2014
	Building improvements		$	12,074		$	13,416
	Equipment			180,540			185,391
	Capital leases—property			26,945			26,945
	Capital leases—equipment			2,794			7,883
	Capitalized internal-use software			304,146			351,978

				526,499			585,613
	Accumulated depreciation			(354,166	)		(413,697	)

	Property and equipment, net		$	172,333		$	171,916




Schedule of allocation of goodwill by reporting units	Goodwill for each of the Company's reporting units with goodwill at December 31, 2013 and 2014 were as follows (in thousands):
			2013			2014
	Health Plan		$	120,485		$	129,042
	Specialty Solutions			104,549			104,549
	Pharmacy Management			242,290			311,636
	Magellan Complete Care			20,882			20,879

	Total		$	488,206		$	566,106




Summary changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2014 are reflected in the table below (in thousands):
			2013			2014
	Balance as of beginning of period		$	426,939		$	488,206
	Acquisition of Partners Rx(1)			40,385			254
	Acquisition of AlphaCare Holdings(1)			20,882			(3	)
	Acquisition of CDMI			—			69,092
	Acquisition of Cobalt			—			8,557

	Balance as of end of period		$	488,206		$	566,106




Schedule of intangible assets	The following is a summary of intangible assets at December 31, 2013 and 2014, and the estimated useful lives for such assets (in thousands):
			December 31, 2013
	Asset		Estimated		Gross			Accumulated			Net
			Useful Life		Carrying			Amortization			Carrying
					Amount						Amount
	Customer agreements and lists		2.5 to 18 years		$	163,990		$	(100,482	)	$	63,508
	Provider networks and other		1 to 16 years			11,593			(5,407	)		6,186

					$	175,583		$	(105,889	)	$	69,694



			December 31, 2014
	Asset		Estimated		Gross			Accumulated			Net
			Useful Life		Carrying			Amortization			Carrying
					Amount						Amount
	Customer agreements and lists		2.5 to 18 years		$	249,390		$	(121,788	)	$	127,602
	Provider networks and other		1 to 16 years			13,013			(6,897	)		6,116

					$	262,403		$	(128,685	)	$	133,718




Schedule of changes in medical claims payable	The following table presents the components of the change in medical claims payable for the years ended December 31, 2012, 2013 and 2014 (in thousands):
			2012			2013			2014
	Claims payable and IBNR, beginning of period		$	157,099		$	222,929		$	242,229
	Cost of care:
	Current year			2,076,190			2,264,276			2,097,395
	Prior years(3)			(4,300	)		(31,300	)		(8,800	)

	Total cost of care			2,071,890			2,232,976			2,088,595

	Claim payments and transfers to other medical liabilities(1):
	Current year			1,877,459			2,053,274			1,845,325
	Prior years			128,601			160,402			206,696

	Total claim payments and transfers to other medical liabilities			2,006,060			2,213,676			2,052,021

	Claims payable and IBNR, end of period			222,929			242,229			278,803
	Withhold receivables, end of period(2)			(24,500	)		(13,888	)		(321	)

	Medical claims payable, end of period		$	198,429		$	228,341		$	278,482




	-1	For any given period, a portion of unpaid medical claims payable could be covered by reinvestment liability (discussed below) and may not impact the Company's results of operations for such periods.
	-2	Medical claims payable is offset by customer withholds from capitation payments in situations in which the customer has the contractual requirement to pay providers for care incurred.
	-3	Favorable development in 2012, 2013, and 2014 was $4.3 million, $31.3 million, and $8.8 million, respectively.

Acquisitions_Tables

Acquisitions (Tables)	12 Months Ended
Acquisitions (Tables)	Dec. 31, 2014
AlphaCare Holdings Inc.
Acquisitions
Summary of estimated fair values of assets acquired and liabilities assumed at the date of the acquisition	The estimated fair values of AlphaCare Holdings assets acquired and liabilities assumed at the date of acquisition are summarized as follows (in thousands):
			Initial Amounts			Measurement			Current Amounts
			Recognized at			Period			Recognized at
			Acquisition Date(1)			Adjustments(2)			Acquisition Date
	Assets acquired:
	Current assets (includes $6,249 of cash and $7,900 of restricted cash)		$	14,766		$	(548	)	$	14,218
	Property and equipment, net			310			(39	)		271
	Other assets			475			66			541
	Other identified intangible assets			4,590			2,600			7,190
	Goodwill			20,882			(3	)		20,879

	Total assets acquired			41,023			2,076			43,099

	Liabilities assumed:
	Current liabilities			3,139			1,039			4,178
	Deferred tax liabilities			1,830			1,037			2,867

	Total liabilities assumed			4,969			2,076			7,045

	Net assets acquired			36,054			—			36,054
	Less: net assets attributable to noncontrolling interest			(10,554	)		—			(10,554	)

	Net consideration		$	25,500		$	—		$	25,500




	-1	As previously reported in the Company's Form 10-K for the year ended December 31, 2013.
	-2	The measurement period adjustments were recorded to reflect a $2.6 million increase in the customer contracts identified intangible and a $1.0 million increase to the deferred tax liability as a result of finalization of the valuation and other net changes of ($1.6) million as a result of changes in the estimated fair values of the associated assets acquired and liabilities assumed based on factors existing at the acquisition date.


CDMI
Acquisitions
Summary of estimated fair values of assets acquired and liabilities assumed at the date of the acquisition	The estimated fair values of CDMI assets acquired and liabilities assumed at the date of the acquisition are summarized as follows (in thousands):
	Assets acquired:
	Current assets (includes $41,892 of accounts receivable)		$	41,996
	Property and equipment, net			457
	Other assets			9
	Other identified intangible assets			84,220
	Goodwill			69,092

	Total assets acquired			195,774

	Liabilities assumed:
	Current liabilities			28,985
	Contingent consideration			45,778

	Total liabilities assumed			74,763

	Net assets acquired		$	121,011




Schedule of pro forma information	Such pro forma information does not purport to be indicative of operating results that would have been reported had the acquisition of CDMI occurred on January 1, 2013 and 2014 (in thousands, except per share amounts):

			Year Ended
			December 31,
			2013			2014
			(unaudited)			(unaudited)
	Net revenue		$	3,588,975		$	3,771,711
	Net income			114,549			75,530
	Income per common share attributable to Magellan Health, Inc.:
	Basic		$	4.23		$	2.83
	Diluted		$	4.12		$	2.75

Stockholders_Equity_Tables

Stockholders' Equity (Tables)	12 Months Ended
Stockholders' Equity (Tables)	Dec. 31, 2014
Equity related disclosures
Schedule of stock option activity
			2012						2013
			Options			Weighted			Options			Weighted
						Average						Average
						Exercise						Exercise
						Price						Price
	Outstanding, beginning of period			3,841,233		$	42.65			4,268,240		$	44.35
	Granted			1,402,800			47.54			1,047,133			53.18
	Forfeited			(444,939	)		46.08			(165,734	)		49.66
	Exercised			(530,854	)		39.03			(1,139,493	)		41.53

	Outstanding, end of period			4,268,240		$	44.35			4,010,146		$	47.23



			2014
			Options			Weighted			Weighted			Aggregate
						Average			Average			Intrinsic
						Exercise			Remaining			Value
						Price			Contractual			(in thousands)
									Term (in years)
	Outstanding, beginning of period			4,010,146		$	47.23
	Granted			769,636			59.62
	Forfeited			(267,028	)		53.74
	Exercised			(1,191,691	)		44.45

	Outstanding, end of period			3,321,063		$	50.58			6.98		$	31,648


	Vested and expected to vest at end of period			3,292,871		$	50.53			6.96		$	31,551


	Exercisable, end of period			1,693,694		$	46.58			5.56		$	22,813




Schedule of weighted average assumptions used to determine weighted average grant date fair value
			2012			2013			2014
	Risk-free interest rate			0.66	%		0.67	%		1.16	%
	Expected life			4 years			4 years			4 years
	Expected volatility			30.30	%		27.86	%		26.20	%
	Expected dividend yield			0.00	%		0.00	%		0.00	%


Schedule of nonvested restricted stock award activity
			2012						2013					2014
			Shares			Weighted			Shares			Weighted		Shares			Weighted
						Average						Average					Average
						Grant Date						Grant Date					Grant Date
						Fair Value						Fair Value					Fair Value
	Outstanding, beginning of period			18,748		$	52.11			23,672		$	42.25		192,165		$	56.59
	Awarded(1)			23,672			42.25			192,165			56.59		1,451,231			57.75
	Vested			(18,748	)		52.11			(23,672	)		42.25		(16,569	)		52.82
	Forfeited			—			—			—			—		—			—

	Outstanding, ending of period			23,672		$	42.25			192,165		$	56.59		1,626,827		$	57.66




	-1	December 31, 2013 includes 175,596 shares associated with the Partners Rx acquisition. December 31, 2014 includes 1,433,946 shares associated with the CDMI acquisition.


Schedule of nonvested restricted stock units
			2012						2013					2014
			Shares			Weighted			Shares			Weighted		Shares			Weighted
						Grant Date						Grant Date					Grant Date
						Fair Value						Fair Value					Fair Value
	Outstanding, beginning of period			206,338		$	44.63			202,690		$	47.38		194,913		$	50.21
	Awarded			131,913			47.48			98,580			52.62		76,306			60.39
	Vested			(99,976	)		41.81			(95,138	)		46.72		(91,510	)		49.53
	Forfeited			(35,585	)		47.43			(11,219	)		49.79		(23,014	)		54.86

	Outstanding, ending of period			202,690		$	47.38			194,913		$	50.21		156,695		$	54.88




Computation of basic and diluted earnings per share	The following table reconciles income (numerator) and shares (denominator) used in the Company's computations of net income per share for the years ended December 31, 2012, 2013 and 2014 (in thousands, except per share data):
			2012			2013			2014
	Numerator:
	Net income attributable to Magellan Health, Inc.		$	151,027		$	125,261		$	79,404


	Denominator:
	Weighted average number of common shares outstanding—basic			27,386			27,054			26,689
	Common stock equivalents—stock options			406			564			495
	Common stock equivalents—restricted stock awards			11			13			155
	Common stock equivalents—restricted stock units			77			42			14
	Common stock equivalents—employee stock purchase plan			2			2			2

	Weighted average number of common shares outstanding—diluted			27,882			27,675			27,355


	Net income attributable to Magellan Health, Inc. per common share—basic		$	5.51		$	4.63		$	2.98


	Net income attributable to Magellan Health, Inc. per common share—diluted		$	5.42		$	4.53		$	2.90




October 2011 Share Repurchase Program
Equity related disclosures
Schedule of stock repurchases made under open market	Pursuant to this program, the Company made open market purchases as follows (aggregate cost excludes broker commissions and is reflected in millions):
	Period		Total Number			Average			Aggregate
			of Shares			Price Paid			Cost
			Purchased			per Share
	November 11, 2011 - December 31, 2011			671,776		$	48.72		$	32.7
	January 1, 2012 - December 31, 2012			459,252			50.27			23.1
	January 1, 2013 - December 31, 2013			1,159,871			51.83			60.1
	January 1, 2014 - November 21, 2014			3,183,306			57.82			184.1

				5,474,205					$	300.0




October 2014 Share Repurchase Program
Equity related disclosures
Schedule of stock repurchases made under open market	On October 22, 2014 the Company's board of directors approved a new stock repurchase plan which authorized the Company to purchase up to $200 million of its outstanding common stock through October 22, 2016. Pursuant to this program, the Company made open market purchases as follows (aggregate cost excludes broker commissions and is reflected in millions):
	Period		Total Number			Average			Aggregate
			of Shares			Price Paid			Cost
			Purchased			per Share
	November 24, 2014 - December 31, 2014			232,170		$	60.65		$	14.1

Income_Taxes_Tables

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Dec. 31, 2014
Income Taxes
Schedule of components of income tax expense (benefit)	The components of income tax expense (benefit) for the following years ended December 31 were as follows (in thousands):
		2012			2013			2014
	Income taxes currently payable:
	Federal	$	18,345		$	37,691		$	42,674
	State		2,187			3,445			5,306

			20,532			41,136			47,980

	Deferred income taxes (benefits):
	Federal		14,922			(1,726	)		(3,236	)
	State		2,384			514			(1,055	)

			17,306			(1,212	)		(4,291	)

	Total income tax expense	$	37,838		$	39,924		$	43,689




Schedule of differences between total income tax expense and amount computed using the statutory federal income tax rate	Total income tax expense for the years ended December 31 was different from the amount computed using the statutory federal income tax rate of 35 percent for the following reasons (in thousands):
		2012			2013			2014
	Income tax expense at federal statutory rate	$	67,107		$	57,815		$	41,272
	State income taxes, net of federal income tax benefit		6,812			4,412			2,738
	Tax contingencies reversed due to statute closings		(37,093	)		(25,299	)		(17,318	)
	Change in valuation allowances		(288	)		18			4,999
	Non-deductible ACA fees		—			—			8,205
	Other-net		1,300			2,978			3,793

	Total income tax expense	$	37,838		$	39,924		$	43,689




Schedule of components of deferred tax assets and liabilities	The significant components of deferred tax assets and liabilities at December 31 were as follows (in thousands):
		2013			2014
	Deferred tax assets:
	Net operating loss carryforwards	$	8,604		$	15,867
	Share-based compensation		15,926			14,519
	Other accrued compensation		7,619			8,332
	Claims reserves		8,005			9,429
	Deferred revenue		6,708			4,090
	Other non-deductible accrued liabilities		13,568			5,919
	Indirect tax benefits		4,804			3,825
	Other deferred tax assets		987			2,356

	Total deferred tax assets		66,221			64,337
	Valuation allowances		(3,102	)		(12,363	)

	Deferred tax assets after valuation allowances		63,119			51,974

	Deferred tax liabilities:
	Depreciation		(43,417	)		(42,644	)
	Amortization of goodwill and intangible assets		(20,615	)		(9,407	)
	Prepaid expenses		(3,603	)		(3,631	)
	Other deferred tax liabilities		—			(16	)

	Total deferred tax liabilities		(67,635	)		(55,698	)

	Net deferred tax liabilities	$	(4,516	)	$	(3,724	)




Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits	A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):
		2012			2013			2014
	Balance as of beginning of period	$	99,230		$	56,601		$	30,176
	Additions for current year tax positions		1,904			2,367			2,734
	Additions for tax positions of prior years		403			214			118
	Reductions for tax positions of prior years		(1,618	)		(396	)		(35	)
	Reductions due to lapses of applicable statutes of limitation		(43,297	)		(28,606	)		(19,465	)
	Reductions due to settlements with taxing authorities		(21	)		(4	)		—

	Balance as of end of period	$	56,601		$	30,176		$	13,528

Supplemental_Cash_Flow_Informa1

Supplemental Cash Flow Information (Tables)	12 Months Ended
Supplemental Cash Flow Information (Tables)	Dec. 31, 2014
Supplemental Cash Flow Information
Schedule of supplemental cash flow information	Supplemental cash flow information for the years ended December 31, 2012, 2013 and 2014 is as follows (in thousands):
		2012		2013		2014
	Income taxes paid, net of refunds	$	57,663	$	65,511	$	57,728


	Interest paid	$	1,594	$	2,264	$	3,389


	Assets acquired through capital leases	$	—	$	29,739	$	2,810

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	12 Months Ended
Commitments and Contingencies (Tables)	Dec. 31, 2014
Commitments and Contingencies
Summary of activity related to restructuring liabilities	The following table summarizes the activity related to the employee termination cost aspect of the 2013 restructuring liabilities for the year ended December 31, 2014, by reportable segment (in thousands):
		Commercial			Public			Corporate			Consolidated
		Commercial			Sector			Corporate			Consolidated
	Liability for employee termination costs at December 31, 2013	$	4,744		$	4,296		$	3,429		$	12,469
	Additions		850			797			341			1,988
	Payments		(3,756	)		(3,596	)		(2,458	)		(9,810	)
	Liability released		(1,188	)		(1,196	)		(1,312	)		(3,696	)

	Liability for employee termination costs at December 31, 2014	$	650		$	301		$	—		$	951

Business_Segment_Information_T

Business Segment Information (Tables)	12 Months Ended
Business Segment Information (Tables)	Dec. 31, 2014
Business Segment Information
Schedule of operating results by business segment	The following tables summarize, for the periods indicated, operating results by business segment (in thousands):
		Commercial			Public			Specialty			Pharmacy			Corporate			Consolidated
					Sector			Solutions			Management			and
														Elimination
	Year Ended December 31, 2012
	Managed care and other revenue	$	728,512		$	1,620,875		$	349,133		$	227,669		$	(69,090	)	$	2,857,099
	Dispensing revenue		—			—			—			350,298			—			350,298
	Cost of care		(437,518	)		(1,413,320	)		(228,383	)		(61,759	)		69,090			(2,071,890	)
	Cost of goods sold		—			—			—			(328,414	)		—			(328,414	)
	Direct service costs and other		(172,035	)		(89,129	)		(55,418	)		(111,593	)		(129,337	)		(557,512	)
	Stock compensation expense(1)		532			1,111			1,567			1,007			13,566			17,783

	Segment profit (loss)	$	119,491		$	119,537		$	66,899		$	77,208		$	(115,771	)	$	267,364


	Identifiable assets by business segment(3)
	Restricted cash	$	18,254		$	147,766		$	—		$	—		$	60,534		$	226,554
	Net accounts receivable		39,678			27,415			7,580			65,755			(2,175	)		138,253
	Investments		21,273			101,093			—			—			111,324			233,690
	Pharmaceutical inventory		—			—			45,727			—			—			45,727
	Goodwill		120,485			—			104,549			201,905			—			426,939
	Other intangible assets, net		2,152			—			7,877			24,906			—			34,935
		Commercial			Public			Specialty			Pharmacy			Corporate			Consolidated
					Sector			Solutions			Management			and
														Elimination
	Year Ended December 31, 2013
	Managed care and other revenue	$	766,841		$	1,757,933		$	375,818		$	228,705		$	(66,248	)	$	3,063,049
	PBM and dispensing revenue		—			—			—			483,268			—			483,268
	Cost of care		(469,478	)		(1,523,023	)		(247,496	)		(59,227	)		66,248			(2,232,976	)
	Cost of goods sold		—			—			—			(455,601	)		—			(455,601	)
	Direct service costs and other		(172,491	)		(122,819	)		(57,334	)		(128,427	)		(138,475	)		(619,546	)
	Stock compensation expense(1)		503			1,038			1,630			1,172			16,909			21,252

	Segment profit (loss)	$	125,375		$	113,129		$	72,618		$	69,890		$	(121,566	)	$	259,446


	Identifiable assets by business segment(3)
	Restricted cash	$	25,107		$	196,651		$	—		$	—		$	14,938		$	236,696
	Net accounts receivable		50,407			62,977			7,368			115,527			1,906			238,185
	Investments		16,491			92,966			—			—			98,856			208,313
	Pharmaceutical inventory		—			—			49,609			—			—			49,609
	Goodwill		120,485			20,882			104,549			242,290			—			488,206
	Other intangible assets, net		1,076			4,590			6,123			57,905			—			69,694
		Commercial			Public			Specialty			Pharmacy			Corporate			Consolidated
					Sector			Solutions			Management			and
														Elimination
	Year Ended December 31, 2014
	Managed care and other revenue	$	673,996		$	1,635,609		$	471,300		$	205,524		$	(18,055	)	$	2,968,374
	PBM and dispensing revenue		—			—			—			844,512			(52,768	)		791,744
	Cost of care		(364,780	)		(1,385,858	)		(339,714	)		(16,298	)		18,055			(2,088,595	)
	Cost of goods sold		—			—			—			(784,758	)		51,809			(732,949	)
	Direct service costs and other		(160,341	)		(187,966	)		(71,785	)		(182,833	)		(120,573	)		(723,498	)
	Stock compensation expense(1)		618			894			1,387			28,829			8,856			40,584
	Changes in fair value of contingent consideration(1)		38			—			—			6,134			—			6,172
	Less: non-controlling interest segment profit (loss)(2)		—			(5,087	)		—			—			—			(5,087	)

	Segment profit (loss)	$	149,531		$	67,766		$	61,188		$	101,110		$	(112,676	)	$	266,919


	Identifiable assets by business segment(3)
	Restricted cash	$	9,515		$	204,166		$	—		$	—		$	1,644		$	215,325
	Net accounts receivable		56,056			98,480			15,952			180,535			2,690			353,713
	Investments		18,133			124,824			—			—			124,697			267,654
	Pharmaceutical inventory		—			—			—			39,375			—			39,375
Goodwill		129,042			20,879			104,549			311,636			—			566,106
Other intangible assets, net		2,031			6,471			2,338			122,878			—			133,718


-1	Stock compensation expense and changes in present value of contingent consideration are included in direct service costs and other operating expenses, however these amounts are excluded from the computation of Segment Profit.
-2	The non-controlling interest portion of AlphaCare's segment profit (loss) is excluded from the computation of Segment Profit.
-3	Identifiable assets by business segment are those assets that are used in the operations of each segment. The remainder of the Company's assets cannot be specifically identified by segment.


Schedule of reconciliation of Segment Profit to consolidated income before income taxes	The following table reconciles Segment Profit to consolidated income before income taxes for the years ended December 31, 2012, 2013 and 2014 (in thousands):
		2012			2013			2014
	Segment Profit	$	267,364		$	259,446		$	266,919
	Stock compensation expense		(17,783	)		(21,252	)		(40,584	)
	Changes in fair value of contingent consideration		—			—			(6,172	)
	Non-controlling interest segment profit (loss)		—			—			(5,087	)
	Depreciation and amortization		(60,488	)		(71,994	)		(91,070	)
	Interest expense		(2,247	)		(3,000	)		(7,387	)
	Interest and other income		2,019			1,985			1,301

	Income before income taxes	$	188,865		$	165,185		$	117,920

Selected_Quarterly_Financial_D1

Selected Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
Selected Quarterly Financial Data (Unaudited) (Tables)	Dec. 31, 2014
Selected Quarterly Financial Data (Unaudited)
Schedule of Summary of unaudited quarterly results of operations	The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2013 and 2014 (in thousands, except per share amounts):
			For the Quarter Ended
			March 31,			June 30,			September 30,			December 31,
			2013			2013			2013			2013
	Fiscal Year Ended December 31, 2013
	Net revenue:
	Managed care and other		$	722,589		$	746,720		$	770,113		$	823,627
	PBM and dispensing			99,172			96,028			103,485			184,583

	Total net revenue			821,761			842,748			873,598			1,008,210

	Costs and expenses:
	Cost of care			525,027			537,630			564,537			605,782
	Cost of goods sold			93,512			90,175			97,503			174,411
	Direct service costs and other operating expenses(1)			139,627			144,497			156,834			178,588
	Depreciation and amortization			16,170			16,946			17,654			21,224
	Interest expense			610			792			789			809
	Interest and other income			(353	)		(358	)		(291	)		(983	)

	Total costs and expenses			774,593			789,682			837,026			979,831

	Income before income taxes			47,168			53,066			36,572			28,379
	Provision for income taxes			19,110			21,586			(10,660	)		9,888

	Net income		$	28,058		$	31,480		$	47,232		$	18,491


	Weighted average number of common shares outstanding—basic			27,110			26,829			26,990			27,285


	Weighted average number of common shares outstanding—diluted			27,648			27,338			27,704			28,008


	Net income per common share—basic:		$	1.03		$	1.17		$	1.75		$	0.68


	Net income per common share—diluted:		$	1.01		$	1.15		$	1.7		$	0.67


			For the Quarter Ended
			March 31,			June 30,			September 30,			December 31,
			2014			2014			2014			2014
	Fiscal Year Ended December 31, 2014
	Net revenue:
	Managed care and other		$	829,591		$	682,274		$	703,020		$	753,489
	PBM and dispensing			136,884			205,740			220,150			228,970

	Total net revenue			966,475			888,014			923,170			982,459

	Costs and expenses:
	Cost of care			605,708			481,617			495,180			506,090
	Cost of goods sold			125,298			192,566			202,180			212,905
	Direct service costs and other operating expenses(2)			164,722			179,034			176,928			202,814
	Depreciation and amortization			20,229			22,480			23,956			24,405
	Interest expense			836			2,004			2,879			1,668
	Interest and other income			(311	)		(275	)		(241	)		(474	)

	Total costs and expenses			916,482			877,426			900,882			947,408

	Income before income taxes			49,993			10,588			22,288			35,051
	Provision for income taxes			25,613			6,261			(3,490	)		15,305

	Net income			24,380			4,327			25,778			19,746
	Less: net income (loss) attributable to non-controlling interest			(1,340	)		(659	)		(1,355	)		(1,819	)

Net income attributable to Magellan Health, Inc.		$	25,720		$	4,986		$	27,133		$	21,565


Weighted average number of common shares outstanding—basic			27,370			27,144			26,703			25,558


Weighted average number of common shares outstanding—diluted			28,051			27,765			27,242			26,382


Net income per common share attributable to Magellan Health, Inc.:
Net income per common share—basic:		$	0.94		$	0.18		$	1.02		$	0.84


Net income per common share—diluted:		$	0.92		$	0.18		$	1		$	0.82




-1	Includes stock compensation expense of $5,638, $4,602, $4,524 and $6,488 for the quarters ended March 31, June 30, September 30, and December 31, 2013, respectively.
-2	Includes stock compensation expense of $4,472, $9,550, $11,961 and $14,601 for the quarters ended March 31, June 30, September 30, and December 31, 2014, respectively.

General_Details

General (Details)	12 Months Ended
	Dec. 31, 2014
	segment
Operating results by business segment
Number of segments	5
Managed Healthcare
Operating results by business segment
Number of segments	2

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net revenues
ACA fees expensed									$21,400,000
Revenues recorded associated with the accrual for the reimbursement of the economic impact of the ACA fees from its customers									36,500,000
Managed Care Revenue									2,600,000,000	2,700,000,000	2,500,000,000
Fee-For-Service and Cost-Plus Contracts Revenue									290,900,000	215,100,000	151,400,000
Block Grant Revenues									33,300,000	131,500,000	124,800,000
Performance-Based Revenue									12,000,000	14,000,000	25,400,000
Rebate Revenues									43,600,000	34,800,000	40,200,000
PBM Revenue									575,700,000	106,700,000
Dispensing Revenue									216,000,000	376,600,000	350,300,000
Significant customers
Revenues generated	982,459,000	923,170,000	888,014,000	966,475,000	1,008,210,000	873,598,000	842,748,000	821,761,000	3,760,118,000	3,546,317,000	3,207,397,000
Maricopa County Regional Behavioral Health Authority
Significant customers
Number of members receiving behavioral healthcare management and other related services				680,000
Revenues generated									216,600,000	755,000,000	758,300,000
Iowa Contracts
Significant customers
Number of contracts									2
Revenues generated									465,000,000	321,100,000	240,200,000
Iowa Medicaid Contract
Significant customers
Termination notice period without cause									30 days
Iowa Medicaid Integrated Health Home Provider Agreement
Significant customers
Termination notice period without cause									60 days
Commercial \| Customer A \| Service
Significant customers
Revenues generated									110,153,000	207,080,000	192,415,000
Commercial \| Customer B \| Service
Significant customers
Revenues generated									184,981,000	141,444,000	134,885,000
Commercial \| Customer C \| Service
Significant customers
Revenues generated									107,247,000	70,390,000	12,722,000
Commercial \| Customer D \| Service
Significant customers
Revenues generated										74,203,000	118,351,000
Commercial \| Customer E \| Service
Significant customers
Revenues generated									67,426,000	71,085,000	67,959,000
Public Sector \| Customer F \| Service
Significant customers
Revenues generated									253,661,000	128,607,000	133,864,000
Specialty Solutions \| Customer A \| Service
Significant customers
Revenues generated									54,413,000	6,399,000	1,339,000
Specialty Solutions \| Customer G \| Service
Significant customers
Revenues generated									146,930,000	130,895,000	117,739,000
Specialty Solutions \| Customer H \| Service
Significant customers
Revenues generated									33,492,000	55,078,000	60,094,000
Specialty Solutions \| Customer I \| Service
Significant customers
Revenues generated									76,580,000	61,838,000	57,455,000
Specialty Solutions \| Customer J \| Service
Significant customers
Revenues generated									52,310,000	47,311,000	38,366,000
Pharmacy Management \| Customer E \| Service
Significant customers
Revenues generated									2,612,000	92,647,000	73,785,000
Pharmacy Management \| Customer K \| Service
Significant customers
Revenues generated									123,812,000	133,724,000	129,209,000
Minimum number of contracts per customer									1
Pharmacy Management \| Customer L \| Service
Significant customers
Revenues generated									14,312,000	59,125,000	60,350,000
Pharmacy Management \| Customer M \| Service
Significant customers
Revenues generated									18,055,000	66,153,000	69,090,000
Pharmacy Management \| Customer N \| Service
Significant customers
Revenues generated									$171,936,000

Summary_of_Significant_Account4

Summary of Significant Accounting Policies (Details 2) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Concentration of Business
Net revenue	$982,459	$923,170	$888,014	$966,475	$1,008,210	$873,598	$842,748	$821,761	$3,760,118	$3,546,317	$3,207,397
Minimum
Concentration of Business
Term of Contract									1 year
Term of renewed contract									1 year
Notice period for termination of contract									60 days
Maximum
Concentration of Business
Term of Contract									3 years
Term of renewed contract									2 years
Notice period for termination of contract									180 days
Pennsylvania Counties
Concentration of Business
Net revenue									$369,900	$359,000	$354,100

Summary_of_Significant_Account5

Summary of Significant Accounting Policies (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Taxes
The ownership percentage for which the entity files a consolidated federal income tax return, low end of range	80.00%
Cash and Cash Equivalents
Maximum maturity period of short-term and highly liquid interest bearing investments at time of purchase	3 months
Excess capital and undistributed earnings included in cash and cash equivalents	$65,500,000
Restricted Assets
Restricted cash	215,325,000	236,696,000	226,554,000
Restricted short-term investments	132,808,000	117,674,000
Restricted deposits (included in other current assets)	30,620,000	25,009,000
Restricted long-term investments	43,293,000	32,430,000
Total	$422,046,000	$411,809,000

Summary_of_Significant_Account6

Summary of Significant Accounting Policies (Details 4) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets
Restricted Cash	$215,325,000	$236,696,000	$226,554,000
Investments	267,654,000	208,313,000
Cash held in bank accounts by the Company, unrestricted	116,000,000	102,200,000
Cash held in bank accounts by the Company, restricted	149,300,000	108,400,000
Liabilities
Contingent consideration	58,153,000
Level 2 \| Term Loan
Fair value of debt disclosures
Fair value of long-term debt	246,900,000
Fair value measured on recurring basis \| Level 1
Assets
Total assets measured at fair value	4,303,000	1,129,000
Fair value measured on recurring basis \| Level 1 \| U.S. Government and agency securities
Assets
Investments	4,303,000	1,129,000
Fair value measured on recurring basis \| Level 2
Assets
Total assets measured at fair value	468,623,000	436,530,000
Fair value measured on recurring basis \| Level 2 \| Other than cash held in bank accounts by Company
Assets
Cash and Cash Equivalents	139,280,000	101,028,000
Restricted Cash	65,992,000	128,318,000
Fair value measured on recurring basis \| Level 2 \| Obligations of government-sponsored enterprises
Assets
Investments	15,315,000	8,440,000
Fair value measured on recurring basis \| Level 2 \| Corporate debt securities
Assets
Investments	246,886,000	198,594,000
Fair value measured on recurring basis \| Level 2 \| Certificates of deposit
Assets
Investments	1,150,000	150,000
Fair value measured on recurring basis \| Level 3
Liabilities
Contingent consideration	58,153,000
Total liabilities held at fair value	58,153,000
Fair value measured on recurring basis \| Total
Assets
Total assets measured at fair value	472,926,000	437,659,000
Liabilities
Contingent consideration	58,153,000
Total liabilities held at fair value	58,153,000
Fair value measured on recurring basis \| Total \| Other than cash held in bank accounts by Company
Assets
Cash and Cash Equivalents	139,280,000	101,028,000
Restricted Cash	65,992,000	128,318,000
Fair value measured on recurring basis \| Total \| U.S. Government and agency securities
Assets
Investments	4,303,000	1,129,000
Fair value measured on recurring basis \| Total \| Obligations of government-sponsored enterprises
Assets
Investments	15,315,000	8,440,000
Fair value measured on recurring basis \| Total \| Corporate debt securities
Assets
Investments	246,886,000	198,594,000
Fair value measured on recurring basis \| Total \| Certificates of deposit
Assets
Investments	$1,150,000	$150,000

Summary_of_Significant_Account7

Summary of Significant Accounting Policies (Details 5) (USD $)	12 Months Ended
	Dec. 31, 2014	Apr. 30, 2014	Jul. 01, 2014
Fair value measurement of contingent consideration
Fair values inputs - Discount Rate (as a percent)	14.50%
Fair value of the contingent consideration	$58,153,000
Changes in fair value	9,304,000
Liability for contingent consideration
Changes in fair value	9,304,000
Balance as of end of period	58,153,000
Fair value of the short term contingent consideration	8,300,000
Fair value of the long term contingent consideration	49,839,000
Direct service costs and other operating expenses
Fair value measurement of contingent consideration
Changes in fair value	6,200,000
Liability for contingent consideration
Changes in fair value	6,200,000
Interest expense
Fair value measurement of contingent consideration
Changes in fair value	3,100,000
Liability for contingent consideration
Changes in fair value	3,100,000
CDMI
Contingent consideration disclosures
Maximum potential contingent payments		165,000,000
Fair value measurement of contingent consideration
Estimated undiscounted future contingent payments	65,700,000	61,700,000
Fair value of the contingent consideration	54,900,000
Liability for contingent consideration
Contingent consideration	45,778,000	45,778,000
Balance as of end of period	54,900,000
CDMI \| Minimum
Fair value measurement of contingent consideration
Fair value inputs - Probability Of Payment (as a percent)	0.00%
CDMI \| Maximum
Fair value measurement of contingent consideration
Fair value inputs - Probability Of Payment (as a percent)	85.00%
Cobalt
Contingent consideration disclosures
Maximum potential contingent payments			6,000,000
Fair value measurement of contingent consideration
Estimated undiscounted future contingent payments	4,200,000		4,200,000
Liability for contingent consideration
Contingent consideration	$3,071,000
Cobalt \| Minimum
Fair value measurement of contingent consideration
Fair value inputs - Probability Of Payment (as a percent)	5.00%
Cobalt \| Maximum
Fair value measurement of contingent consideration
Fair value inputs - Probability Of Payment (as a percent)	70.00%

Summary_of_Significant_Account8

Summary of Significant Accounting Policies (Details 6) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Short-term and long-term investments
Other-than-temporary unrealized losses	$0	$0
Realized gains or losses	0	0
Amortized Cost	267,891,000	208,468,000
Gross Unrealized Gains	9,000	20,000
Gross Unrealized Losses	-246,000	-175,000
Estimated Fair Value	267,654,000	208,313,000
U.S. Government and agency securities
Short-term and long-term investments
Amortized Cost	4,305,000	1,129,000
Gross Unrealized Losses	-2,000
Estimated Fair Value	4,303,000	1,129,000
Obligations of government-sponsored enterprises
Short-term and long-term investments
Amortized Cost	15,318,000	8,441,000
Gross Unrealized Gains	1,000	2,000
Gross Unrealized Losses	-4,000	-3,000
Estimated Fair Value	15,315,000	8,440,000
Corporate debt securities
Short-term and long-term investments
Amortized Cost	247,118,000	198,748,000
Gross Unrealized Gains	8,000	18,000
Gross Unrealized Losses	-240,000	-172,000
Estimated Fair Value	246,886,000	198,594,000
Certificates of deposit
Short-term and long-term investments
Amortized Cost	1,150,000	150,000
Estimated Fair Value	$1,150,000	$150,000

Summary_of_Significant_Account9

Summary of Significant Accounting Policies (Details 7) (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Amortized Cost
Maturity dates, investments,, 2015	$224,509
Maturity dates, investments, 2016	43,382
Amortized Cost	267,891	208,468
Estimated Fair Value
Maturity dates, investments, 2015	224,361
Maturity dates, investments, 2016	43,293
Total, Estimated Fair Value	$267,654	$208,313

Recovered_Sheet1

Summary of Significant Accounting Policies (Details 8) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Property and Equipment
Depreciation expense	$68,300,000	$61,400,000	$50,800,000
Property and equipment, gross	585,613,000	526,499,000
Accumulated depreciation	-413,697,000	-354,166,000
Property and equipment, net	171,916,000	172,333,000
Building improvements
Property and Equipment
Property and equipment, gross	13,416,000	12,074,000
Building improvements \| Minimum
Property and Equipment
Estimated useful lives of assets	2 years
Building improvements \| Maximum
Property and Equipment
Estimated useful lives of assets	10 years
Equipment
Property and Equipment
Property and equipment, gross	185,391,000	180,540,000
Equipment \| Minimum
Property and Equipment
Estimated useful lives of assets	3 years
Equipment \| Maximum
Property and Equipment
Estimated useful lives of assets	15 years
Capital leases - property
Property and Equipment
Property and equipment, gross	26,945,000	26,945,000
Capital leases - equipment
Property and Equipment
Property and equipment, gross	7,883,000	2,794,000
Capitalized internal-use software
Property and Equipment
Depreciation expense	40,900,000	34,800,000	28,800,000
Property and equipment, gross	351,978,000	304,146,000
Property and equipment, net	$85,600,000	$78,800,000
Capitalized internal-use software \| Minimum
Property and Equipment
Estimated useful lives of assets	3 years
Capitalized internal-use software \| Maximum
Property and Equipment
Estimated useful lives of assets	5 years

Recovered_Sheet2

Summary of Significant Accounting Policies (Details 9) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012	Apr. 30, 2014
Goodwill
Goodwill	$566,106	$488,206		$426,939
Changes in goodwill
Balance as of beginning of period				426,939
Balance as of end of period	566,106	488,206		426,939
Partners Rx
Changes in goodwill
Acquisition	254	40,385
AlphaCare Holdings Inc.
Goodwill
Goodwill		20,879
Changes in goodwill
Balance as of beginning of period	20,879
Acquisition	-3	20,882
Balance as of end of period		20,879
CDMI
Goodwill
Goodwill					69,092
Changes in goodwill
Balance as of beginning of period					69,092
Acquisition	69,092
Balance as of end of period					69,092
Cobalt
Changes in goodwill
Acquisition	8,557
Health Plan
Goodwill
Goodwill	129,042	120,485
Changes in goodwill
Balance as of end of period	129,042	120,485
Specialty Solutions
Goodwill
Goodwill	104,549	104,549
Changes in goodwill
Balance as of end of period	104,549	104,549
Pharmacy Management
Goodwill
Goodwill	311,636	242,290
Changes in goodwill
Balance as of end of period	311,636	242,290
Pharmacy Management \| Discounted cash flow
Goodwill
Weights applied to determine fair value of goodwill (as a percent)			75.00%
Pharmacy Management \| Merger and acquisition
Goodwill
Weights applied to determine fair value of goodwill (as a percent)			22.50%
Pharmacy Management \| Public company
Goodwill
Weights applied to determine fair value of goodwill (as a percent)			2.50%
Public Sector \| Magellan Complete Care
Goodwill
Goodwill	20,879	20,882
Changes in goodwill
Balance as of end of period	$20,879	$20,882
Minimum
Goodwill
Percentage change in fair value of goodwill	40.00%
Maximum
Goodwill
Percentage change in fair value of goodwill	65.00%

Recovered_Sheet3

Summary of Significant Accounting Policies (Details 10) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Summary of intangible assets
Gross Carrying Amount	$262,403,000	$175,583,000
Accumulated Amortization	-128,685,000	-105,889,000
Net Carrying Amount	133,718,000	69,694,000
Amortization expense	22,800,000	10,600,000	9,700,000
Estimated amortization expense in future
2015	25,100,000
2016	20,800,000
2017	16,700,000
2018	15,300,000
2019	15,200,000
Customer agreements and lists
Summary of intangible assets
Gross Carrying Amount	249,390,000	163,990,000
Accumulated Amortization	-121,788,000	-100,482,000
Net Carrying Amount	127,602,000	63,508,000
Customer agreements and lists \| Minimum
Summary of intangible assets
Estimated Useful Life	2 years 6 months	2 years 6 months
Customer agreements and lists \| Maximum
Summary of intangible assets
Estimated Useful Life	18 years	18 years
Provider networks and other
Summary of intangible assets
Gross Carrying Amount	13,013,000	11,593,000
Accumulated Amortization	-6,897,000	-5,407,000
Net Carrying Amount	$6,116,000	$6,186,000
Provider networks and other \| Minimum
Summary of intangible assets
Estimated Useful Life	1 year	1 year
Provider networks and other \| Maximum
Summary of intangible assets
Estimated Useful Life	16 years	16 years

Recovered_Sheet4

Summary of Significant Accounting Policies (Details 11) (USD $)	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cost of Care, Medical Claims Payable and Other Medical Liabilities
Period considered for comparing medical claims trend									2 months
Minimum completion factor of insured claims to make projection from historical completion and payment patterns (as a percent)									70.00%
Changes in medical claims payable
Claims payable and IBNR, beginning of period				$242,229,000				$222,929,000	$242,229,000	$222,929,000	$157,099,000
Cost of care:
Current year									2,097,395,000	2,264,276,000	2,076,190,000
Prior years (3)									-8,800,000	-31,300,000	-4,300,000
Total cost of care	506,090,000	495,180,000	481,617,000	605,708,000	605,782,000	564,537,000	537,630,000	525,027,000	2,088,595,000	2,232,976,000	2,071,890,000
Claim payments and transfers to other medical liabilities:
Current year									1,845,325,000	2,053,274,000	1,877,459,000
Prior years									206,696,000	160,402,000	128,601,000
Total claim payments and transfers to other medical liabilities									2,052,021,000	2,213,676,000	2,006,060,000
Claims payable and IBNR, end of period	278,803,000				242,229,000				278,803,000	242,229,000	222,929,000
Withhold receivables, end of period	-321,000				-13,888,000				-321,000	-13,888,000	-24,500,000
Medical claims payable, end of period	278,482,000				228,341,000				278,482,000	228,341,000	198,429,000
Prior years cost of care claims relating to annual reconciliation process with certain providers										15,100,000
Prior years cost of care claims relating to adjustments new contracts to providers										8,300,000
Prior years cost of care claims relating to adjustments faster claims to providers										7,900,000
Advertising Costs
Advertising expense									2,700,000	2,300,000	2,000,000
Accrued Liabilities
Disclosure threshold (as a percent)									5.00%	5.00%
Accrued employee compensation liabilities	47,000,000				40,200,000				47,000,000	40,200,000
Deferred Revenue	$29,800,000								$29,800,000

Recovered_Sheet5

Summary of Significant Accounting Policies (Details 12) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Redeemable Non-Controlling Interest disclosures
Redeemable Non-Controlling Interest	$5,957,000	$10,554,000
AlphaCare Holdings Inc.
Redeemable Non-Controlling Interest disclosures
Percentage of equity interest acquired		65.00%
Percentage of ownership held	75.00%
Percentage of remaining shares which the entity may be required to purchase in the event of exercise of put options by other shareholders	50.00%
Redeemable Non-controlling interest in relation to business acquisition		10,600,000
Redeemable Non-Controlling Interest	6,000,000
Increase (Reduction) in carrying value as a result of operating income (losses)	($4,600,000)

Recovered_Sheet6

Summary of Significant Accounting Policies (Details 13) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based compensation
Stock compensation expense	$14,601	$11,961	$9,550	$4,472	$6,488	$4,524	$4,602	$5,638	$40,584	$21,252	$17,783
Estimated forfeitures (as a percent)									4.00%	4.00%	4.00%
Vesting period									3 years

Acquisitions_Details

Acquisitions (Details) (USD $)	12 Months Ended	0 Months Ended		12 Months Ended	0 Months Ended	8 Months Ended	0 Months Ended
Acquisitions (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Oct. 01, 2013	Dec. 31, 2013	Apr. 30, 2014	Dec. 31, 2014	Jul. 01, 2014	Dec. 31, 2012	17-May-13
Assets acquired
Goodwill	$566,106,000	$488,206,000		$488,206,000		$566,106,000		$426,939,000
Acquisition disclosures
Fair value of the contingent consideration	58,153,000					58,153,000
Changes in fair value	9,304,000
AlphaCare
Acquisitions
Amount of common stock purchased	2,200,000
AlphaCare \| Measurement Period Adjustments
Acquisitions
Increase (decrease) in deferred tax liability		1,000,000
Partners Rx
Acquisitions
Amount of consideration paid in cash			99,300,000
Reduction to consideration paid due to net receipts received for working capital adjustments			700,000
Increase (decrease) in deferred tax liability	-300,000
Acquisition disclosures
Vesting period of restricted stock issued			3 years
AlphaCare Holdings Inc.
Acquisitions
Percentage of equity interest acquired		65.00%		65.00%
Amount of additional Preferred Stock purchased	8,900,000
Percentage of ownership held	75.00%					75.00%
Voting interest of remaining shareholders	25.00%					25.00%
Assets acquired
Current assets		14,218,000		14,218,000
Property and equipment, net		271,000		271,000
Other assets		541,000		541,000
Other identified intangible assets		7,190,000		7,190,000
Goodwill		20,879,000		20,879,000
Total assets acquired		43,099,000		43,099,000
Liabilities assumed
Current liabilities		4,178,000		4,178,000
Deferred tax liabilities		2,867,000		2,867,000
Total liabilities assumed		7,045,000		7,045,000
Net assets acquired		36,054,000		36,054,000
Less: net assets attributable to noncontrolling interest		-10,554,000		-10,554,000
Net consideration		25,500,000		25,500,000
AlphaCare Holdings Inc. \| Cash
Assets acquired
Current assets		6,249,000		6,249,000
AlphaCare Holdings Inc. \| Restricted cash
Assets acquired
Current assets		7,900,000		7,900,000
AlphaCare Holdings Inc. \| Initial Amounts Recognized at Acquisition Date
Assets acquired
Current assets		14,766,000		14,766,000
Property and equipment, net		310,000		310,000
Other assets		475,000		475,000
Other identified intangible assets		4,590,000		4,590,000
Goodwill		20,882,000		20,882,000
Total assets acquired		41,023,000		41,023,000
Liabilities assumed
Current liabilities		3,139,000		3,139,000
Deferred tax liabilities		1,830,000		1,830,000
Total liabilities assumed		4,969,000		4,969,000
Net assets acquired		36,054,000		36,054,000
Less: net assets attributable to noncontrolling interest		-10,554,000		-10,554,000
Net consideration		25,500,000		25,500,000
AlphaCare Holdings Inc. \| Measurement Period Adjustments
Assets acquired
Current assets		-548,000		-548,000
Property and equipment, net		-39,000		-39,000
Other assets		66,000		66,000
Other identified intangible assets		2,600,000		2,600,000
Goodwill		-3,000		-3,000
Total assets acquired		2,076,000		2,076,000
Liabilities assumed
Current liabilities		1,039,000		1,039,000
Deferred tax liabilities		1,037,000		1,037,000
Total liabilities assumed		2,076,000		2,076,000
Other net changes		-1,600,000		-1,600,000
AlphaCare Holdings Inc. \| Measurement Period Adjustments \| Customer contracts
Assets acquired
Other identified intangible assets		2,600,000		2,600,000
AlphaCare Holdings Inc. \| AlphaCare
Acquisitions
Equity interest held (as a percent)									7.00%
Equity investment in preferred membership units									2,000,000
Amount previously loaned to acquiree pursuant to a promissory note									5,900,000
Amount of additional Preferred Stock purchased				17,400,000
CDMI
Acquisitions
Amount of consideration paid in cash					201,100,000
Reduction to consideration paid due to net receipts received for working capital adjustments					3,900,000
Assets acquired
Current assets					41,996,000
Property and equipment, net					457,000
Other assets					9,000
Other identified intangible assets					84,220,000
Goodwill					69,092,000
Total assets acquired					195,774,000
Liabilities assumed
Current liabilities					28,985,000
Contingent consideration	45,778,000				45,778,000	45,778,000
Total liabilities assumed					74,763,000
Net assets acquired					121,011,000
Acquisition disclosures
Amount to be reinvested in restricted common stock by the principal owners and certain key management of acquired entity					80,000,000
Vesting period of restricted stock issued					42 months
Maximum potential contingent payments					165,000,000
Total revenue						31,500,000
Segment Profit						27,200,000
Identified intangible assets					84,200,000
Working capital receivable	100,000					100,000
Estimated undiscounted future contingent payments	65,700,000				61,700,000	65,700,000
Fair value of the contingent consideration	54,900,000					54,900,000
Acquisition related costs	1,300,000
Net revenue	3,771,711,000			3,588,975,000
Net income	75,530,000			114,549,000
Income per share attributable to Magellan Health Services, Inc.:
Basic (in dollars per share)	$2.83			$4.23
Diluted (in dollars per share)	$2.75			$4.12
CDMI \| Accounts receivable
Assets acquired
Current assets					41,892,000
CDMI \| Customer contracts
Acquisition disclosures
Identified intangible assets					82,800,000
Period of amortization of intangible assets acquired					8 years
CDMI \| Tradenames
Acquisition disclosures
Identified intangible assets					400,000
Period of amortization of intangible assets acquired					20 months
CDMI \| Non-compete agreements
Acquisition disclosures
Identified intangible assets					1,000,000
Period of amortization of intangible assets acquired					6 years 6 months
Cobalt
Acquisitions
Amount of consideration paid in cash							8,000,000
Liabilities assumed
Contingent consideration	3,071,000					3,071,000
Acquisition disclosures
Maximum potential contingent payments							6,000,000
Estimated undiscounted future contingent payments	$4,200,000					$4,200,000	$4,200,000

Benefit_Plans_Details

Benefit Plans (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Benefit Plans
Maximum contribution to defined contribution retirement plan by employee, as a percentage of compensation	75.00%
Employer's matching contribution as a percentage of employee's contribution	50.00%
Expense recognized	$8.70	$7.40	$6.30
Maximum
Benefit Plans
Maximum employer matching contribution to defined contribution retirement plan, as a percentage of compensation	6.00%

LongTerm_Debt_and_Capital_Leas1

Long-Term Debt and Capital Lease Obligations (Details) (USD $)	12 Months Ended	0 Months Ended
	Dec. 31, 2014	Jul. 23, 2014	Sep. 30, 2014	Dec. 31, 2013	Dec. 09, 2011
Long-term Debt and Capital Lease Obligations
Capital lease obligations	$24,600,000			$26,700,000
Proceeds from issuance of debt	250,000,000
Gross cost of capital leased assets	34,800,000
Revolving Loan borrowings
Long-term Debt and Capital Lease Obligations
Amount of borrowings outstanding	0			0
Term Loan
Long-term Debt and Capital Lease Obligations
Amount of borrowings outstanding	246,900,000
Long-term Debt, Fiscal Year Maturity
2015	12,500,000
2016	15,600,000
2017	25,000,000
2018	25,000,000
2019	168,800,000
Letter of Credit
Long-term Debt and Capital Lease Obligations
Letters of credit outstanding	32,900,000			33,700,000
2011 Credit Facility \| Revolving Loan borrowings
Long-term Debt and Capital Lease Obligations
Maximum borrowing capacity					230,000,000
Commitment commission (as a percent)	0.38%
2011 Credit Facility \| Letter of Credit
Long-term Debt and Capital Lease Obligations
Maximum borrowing capacity					70,000,000
Stated interest rate (as a percent)	1.88%
2011 Credit Facility \| U.S. dollar denominated loans \| Revolving Loan borrowings
Long-term Debt and Capital Lease Obligations
Borrowing margin (as a percent)	0.75%
2011 Credit Facility \| U.S. dollar denominated loans \| Overnight Federal Funds rate \| Revolving Loan borrowings
Long-term Debt and Capital Lease Obligations
Basis spread on variable rate (as a percent)	0.50%
2011 Credit Facility \| U.S. dollar denominated loans \| Eurodollar rate for one month \| Revolving Loan borrowings
Long-term Debt and Capital Lease Obligations
Basis spread on variable rate (as a percent)	1.00%
2011 Credit Facility \| Eurodollar denominated loans \| Eurodollar rate for selected interest period \| Revolving Loan borrowings
Long-term Debt and Capital Lease Obligations
Borrowing margin (as a percent)	1.75%
2014 Credit Facility
Long-term Debt and Capital Lease Obligations
Maximum borrowing capacity		500,000,000
Term of option to extend credit facility		1 year
2014 Credit Facility \| Revolving Loan borrowings
Long-term Debt and Capital Lease Obligations
Maximum borrowing capacity		250,000,000
Commitment commission (as a percent)	0.20%
2014 Credit Facility \| Term Loan
Long-term Debt and Capital Lease Obligations
Maximum borrowing capacity		250,000,000
2014 Credit Facility \| Letter of Credit
Long-term Debt and Capital Lease Obligations
Maximum borrowing capacity		70,000,000
Stated interest rate (as a percent)	1.63%
2014 Credit Facility \| Revolving and Term Loan Borrowings
Long-term Debt and Capital Lease Obligations
Borrowing margin (as a percent)	0.50%
2014 Credit Facility \| Overnight Federal Funds rate \| Revolving and Term Loan Borrowings
Long-term Debt and Capital Lease Obligations
Basis spread on variable rate (as a percent)	1.00%
2014 Credit Facility \| Eurodollar rate for one month \| Revolving and Term Loan Borrowings
Long-term Debt and Capital Lease Obligations
Basis spread on variable rate (as a percent)	1.00%
2014 Credit Facility \| Eurodollar denominated loans \| Eurodollar rate for selected interest period \| Term Loan
Long-term Debt and Capital Lease Obligations
Proceeds from issuance of debt			$250,000,000
Effective borrowing margin (as a percent)	1.50%
Effective interest rate (as a percent)	1.67%
Weighted average interest rate (as a percent)	1.65%
2014 Credit Facility \| Eurodollar denominated loans \| Eurodollar rate for selected interest period \| Revolving and Term Loan Borrowings
Long-term Debt and Capital Lease Obligations
Borrowing margin (as a percent)	1.50%

Stockholders_Equity_Details

Stockholders' Equity (Details) (USD $)	12 Months Ended
Stockholders' Equity (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based compensation
Vesting period	3 years
Tax benefit from exercise of stock options and vesting of stock awards - financing cash flow	$3,218,000	$3,212,000	$990,000
Change to additional paid in capital related to tax net benefits (deficiencies)	3,000,000	2,300,000	100,000
Excess tax benefits of tax deductions in recognized stock compensation expenses	3,200,000	3,200,000	1,000,000
Deficiency of tax deductions in recognized stock compensation expenses	300,000	800,000	900,000
Stock options
Share-based compensation
Vesting period	3 years
Life of options (Expiration period)	10 years
Stock option activity
Outstanding, beginning of period (in shares)	4,010,146	4,268,240	3,841,233
Granted (in shares)	769,636	1,047,133	1,402,800
Forfeited (in shares)	-267,028	-165,734	-444,939
Exercised (in shares)	-1,191,691	-1,139,493	-530,854
Outstanding, end of period (in shares)	3,321,063	4,010,146	4,268,240
Vested and expected to vest end of period (in shares)	3,292,871
Exercisable, end of period (in shares)	1,693,694
Weighted average exercise price of stock options
Outstanding, beginning of period (in dollars per share)	$47.23	$44.35	$42.65
Granted (in dollars per share)	$59.62	$53.18	$47.54
Forfeited (in dollars per share)	$53.74	$49.66	$46.08
Exercised (in dollars per share)	$44.45	$41.53	$39.03
Outstanding, end of period (in dollars per share)	$50.58	$47.23	$44.35
Vested and expected to vest end of period (in dollars per share)	$50.53
Exercisable, end of period (in dollars per share)	$46.58
Weighted average remaining contractual term
Outstanding, beginning of period	6 years 11 months 23 days
Outstanding, end of period	6 years 11 months 23 days
Vested and expected to vest end of period	6 years 11 months 16 days
Exercisable, end of period	5 years 6 months 22 days
Aggregate intrinsic value
Outstanding, end of the period	31,648,000
Vested and expected to vest end of period	31,551,000
Exercisable, end of period	22,813,000
Closing stock price (in dollars per share)	$60.03
Total pre-tax intrinsic value of options exercised	19,700,000	18,200,000	6,400,000
Grants in period, weighted average grant date fair value (in dollars per share)	$13.49	$12.24	$11.65
Estimates used for determining weighted average grant date fair value
Risk-free interest rate (as a percent)	1.16%	0.67%	0.66%
Expected life	4 years	4 years	4 years
Expected volatility (as a percent)	26.20%	27.86%	30.30%
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%
Unrecognized compensation expense	12,500,000
Unrecognized compensation expense, period of recognition	1 year 11 months 1 day
Aggregate fair value of options vested	11,300,000
Restricted Stock Units (RSUs)
Share-based compensation
Vesting period	3 years
Estimates used for determining weighted average grant date fair value
Unrecognized compensation expense	$4,100,000
Unrecognized compensation expense, period of recognition	2 years 4 days
2011 Management Incentive Plan
Share-based compensation
Maximum number of shares available	5,000,000
Multiplier for delivery of shares under full-value awards	2.29
Number of shares available for grant	2,097,552
2011 Employee Stock Purchase Plan
Stock option activity
Granted (in shares)	30,838	28,715
2014 Employee Stock Purchase Plan
Share-based compensation
Maximum number of shares available	200,000
Number of shares available for grant	217,101

Stockholders_Equity_Details_2

Stockholders' Equity (Details 2) (USD $)	0 Months Ended	12 Months Ended	0 Months Ended	12 Months Ended
In Millions, except Share data, unless otherwise specified	Oct. 01, 2013	Dec. 31, 2013	Apr. 30, 2014	Dec. 31, 2014	Dec. 31, 2012
Partners Rx
Nonvested restricted stock awards and units
Number of restricted stock purchased by certain principal owners of the acquiree	175,596	175,596
CDMI
Nonvested restricted stock awards and units
Number of restricted stock purchased by certain principal owners of the acquiree			1,433,946	1,433,946
Restricted stock awards
Nonvested restricted stock awards and units
Outstanding, beginning of period (in shares)		23,672		192,165	18,748
Awarded (in shares)		192,165		1,451,231	23,672
Vested (in shares)		-23,672		-16,569	-18,748
Outstanding, ending of period (in shares)		192,165		1,626,827	23,672
Weighted average exercise price of nonvested restricted stock award and units
Outstanding, beginning of period (in dollars per share)		42.25		56.59	$52.11
Awarded (in dollars per share)		56.59		57.75	$42.25
Vested (in dollars per share)		42.25		52.82	$52.11
Outstanding, ending of period (in dollars per share)		56.59		57.66	$42.25
Unrecognized compensation expense				68.1
Unrecognized compensation expense, period of recognition				2 years 4 months 17 days
Restricted Stock Units (RSUs)
Nonvested restricted stock awards and units
Outstanding, beginning of period (in shares)		202,690		194,913	206,338
Awarded (in shares)		98,580		76,306	131,913
Vested (in shares)		-95,138		-91,510	-99,976
Forfeited (in shares)		-11,219		-23,014	-35,585
Outstanding, ending of period (in shares)		194,913		156,695	202,690
Weighted average exercise price of nonvested restricted stock award and units
Outstanding, beginning of period (in dollars per share)		47.38		50.21	$44.63
Awarded (in dollars per share)		52.62		60.39	$47.48
Vested (in dollars per share)		46.72		49.53	$41.81
Forfeited (in dollars per share)		49.79		54.86	$47.43
Outstanding, ending of period (in dollars per share)		50.21		54.88	$47.38
Unrecognized compensation expense				4.1
Unrecognized compensation expense, period of recognition				2 years 4 days

Stockholders_Equity_Details_3

Stockholders' Equity (Details 3) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Numerator:
Net income attributable to Magellan Health Inc	$21,565	$27,133	$4,986	$25,720					$79,404	$125,261	$151,027
Denominator:
Weighted average number of common shares outstanding-basic	25,558,000	26,703,000	27,144,000	27,370,000	27,285,000	26,990,000	26,829,000	27,110,000	26,689,000	27,054,000	27,386,000
Common stock equivalents-stock options (in shares)									495,000	564,000	406,000
Common stock equivalents-restricted stock awards (in shares)									155,000	13,000	11,000
Common stock equivalents-restricted stock units (in shares)									14,000	42,000	77,000
Common stock equivalents-employee stock purchase plan (in shares)									2,000	2,000	2,000
Weighted average number of common shares outstanding-diluted (in shares)	26,382,000	27,242,000	27,765,000	28,051,000	28,008,000	27,704,000	27,338,000	27,648,000	27,355,000	27,675,000	27,882,000
Net income per common share-basic:	$0.84	$1.02	$0.18	$0.94	$0.68	$1.75	$1.17	$1.03	$2.98	$4.63	$5.51
Net income per common share-diluted:	$0.82	$1	$0.18	$0.92	$0.67	$1.70	$1.15	$1.01	$2.90	$4.53	$5.42
Potential dilutive securities excluded from computation of dilutive securities (in shares)									700,000	800,000	2,200,000

Stockholders_Equity_Details_4

Stockholders' Equity (Details 4) (USD $)

12 Months Ended

0 Months Ended

12 Months Ended

0 Months Ended

2 Months Ended

11 Months Ended

12 Months Ended

36 Months Ended

1 Months Ended

2 Months Ended

In Millions, except Share data, unless otherwise specified

Dec. 31, 2014

Oct. 01, 2013

Dec. 31, 2013

Apr. 30, 2014

Dec. 31, 2011

Nov. 21, 2014

Dec. 31, 2012

Nov. 21, 2014

Dec. 31, 2014

Feb. 23, 2015

Jul. 24, 2013

Oct. 25, 2011

Oct. 22, 2014

Merger Agreement and Purchase Agreement

Vesting period

3 years

Partners Rx

Merger Agreement and Purchase Agreement

Number of restricted stock purchased by certain principal owners of the acquiree

175,596

Purchase price of restricted stock

$10

Trading day period to calculate average of the closing prices of the company's stock

5 days

Vesting period of restricted stock issued

3 years

Vesting percentage on the second anniversary of the acquisition

50.00%

Vesting percentage on the third anniversary of the acquisition

50.00%

CDMI

Merger Agreement and Purchase Agreement

Number of restricted stock purchased by certain principal owners of the acquiree

1,433,946

Purchase price of restricted stock

Trading day period to calculate average of the closing prices of the company's stock

5 days

Vesting period of restricted stock issued

42 months

CDMI | 25% vesting

Merger Agreement and Purchase Agreement

Vesting period

18 months

Vested and expected to vest for the period (as a percent)

25.00%

CDMI | 75% vesting

Merger Agreement and Purchase Agreement

Vesting period

42 months

Vested and expected to vest for the period (as a percent)

75.00%

October 2011 Share Repurchase Program

Stock Repurchases

Amount authorized under stock repurchase plan

300

200

Total number of Shares Purchased

1,159,871

671,776

3,183,306

459,252

5,474,205

Average Price Paid per Share (in dollars per share)

51.83

$48.72

$57.82

$50.27

Aggregate Cost

60.1

32.7

184.1

23.1

300

October 2014 Share Repurchase Program

Stock Repurchases

Amount authorized under stock repurchase plan

200

Total number of Shares Purchased

232,170

352,592

Average Price Paid per Share (in dollars per share)

$60.65

Aggregate Cost

$14.10

$21.30

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended								12 Months Ended
Income Taxes (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income taxes currently payable:
Federal									$42,674,000	$37,691,000	$18,345,000
State									5,306,000	3,445,000	2,187,000
Aggregate income taxes currently payable									47,980,000	41,136,000	20,532,000
Deferred income taxes (benefits):
Federal									-3,236,000	-1,726,000	14,922,000
State									-1,055,000	514,000	2,384,000
Aggregate deferred income taxes									-4,291,000	-1,212,000	17,306,000
Total income tax expense	15,305,000	-3,490,000	6,261,000	25,613,000	9,888,000	-10,660,000	21,586,000	19,110,000	43,689,000	39,924,000	37,838,000
Statutory federal income tax rate (as a percent)									35.00%	35.00%	35.00%
Differences between total income tax expense and amount computed using the statutory federal income tax rate
Income tax expense at federal statutory rate									41,272,000	57,815,000	67,107,000
State income taxes, net of federal income tax benefit									2,738,000	4,412,000	6,812,000
Tax contingencies reversed due to statute closings									-17,318,000	-25,299,000	-37,093,000
Net change in valuation allowances									4,999,000	18,000	-288,000
Non-deductible ACA fees									8,205,000
Other-net									3,793,000	2,978,000	1,300,000
Total income tax expense	15,305,000	-3,490,000	6,261,000	25,613,000	9,888,000	-10,660,000	21,586,000	19,110,000	43,689,000	39,924,000	37,838,000
Deferred tax assets:
Net operating loss carryforwards	15,867,000				8,604,000				15,867,000	8,604,000
Share-based compensation	14,519,000				15,926,000				14,519,000	15,926,000
Other accrued compensation	8,332,000				7,619,000				8,332,000	7,619,000
Claims reserves	9,429,000				8,005,000				9,429,000	8,005,000
Deferred revenue	4,090,000				6,708,000				4,090,000	6,708,000
Other non-deductible accrued liabilities	5,919,000				13,568,000				5,919,000	13,568,000
Indirect tax benefits	3,825,000				4,804,000				3,825,000	4,804,000
Other deferred tax assets	2,356,000				987,000				2,356,000	987,000
Total deferred tax assets	64,337,000				66,221,000				64,337,000	66,221,000
Valuation allowance	-12,363,000				-3,102,000				-12,363,000	-3,102,000
Deferred tax assets after valuation allowance	51,974,000				63,119,000				51,974,000	63,119,000
Deferred tax liabilities:
Depreciation	-42,644,000				-43,417,000				-42,644,000	-43,417,000
Amortization of goodwill and intangible assets	-9,407,000				-20,615,000				-9,407,000	-20,615,000
Prepaid expenses	-3,631,000				-3,603,000				-3,631,000	-3,603,000
Other deferred tax liabilities	-16,000								-16,000
Total deferred tax liabilities	-55,698,000				-67,635,000				-55,698,000	-67,635,000
Net deferred tax liabilities	-3,724,000				-4,516,000				-3,724,000	-4,516,000
Federal
Income Taxes
Operating Loss Carryforwards	3,000,000								3,000,000
Federal \| AlphaCare
Income Taxes
Operating Loss Carryforwards	24,500,000								24,500,000
State
Income Taxes
Operating Loss Carryforwards	$160,500,000								$160,500,000

Income_Taxes_Details_2

Income Taxes (Details 2) (USD $)	12 Months Ended
Income Taxes (Details 2) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits
Balance as of beginning of period	$30,176,000	$56,601,000	$99,230,000
Additions for current year tax positions	2,734,000	2,367,000	1,904,000
Additions for tax positions of prior years	118,000	214,000	403,000
Reductions for tax positions of prior years	-35,000	-396,000	-1,618,000
Reductions due to lapses of applicable statutes of limitations	-19,465,000	-28,606,000	-43,297,000
Reductions due to settlements with taxing authorities		-4,000	-21,000
Balance as of end of period	13,528,000	30,176,000	56,601,000
Unrecognized tax benefits realized that would have reduced income tax expense	$9,200,000	$23,300,000

Income_Taxes_Details_3

Income Taxes (Details 3) (USD $)	12 Months Ended
Income Taxes (Details 3) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2015
Income tax contingency disclosures
Unrecognized tax benefits: Changes due to lapses of statutes of limitations	$19,465,000	$28,606,000	$43,297,000
Accrued interest and penalties related to unrecognized tax benefits	600,000	1,500,000
Interest and penalties recorded	-800,000	-1,200,000	-100,000
Forecast \| Subsequent event
Income tax contingency disclosures
Unrecognized tax benefits: Changes due to lapses of statutes of limitations				4,200,000
Additional Paid in Capital
Income tax contingency disclosures
Unrecognized tax benefits: Changes due to lapses of statutes of limitations	2,600,000	3,900,000	6,200,000
Additional Paid in Capital \| Forecast \| Subsequent event
Income tax contingency disclosures
Unrecognized tax benefits: Changes due to lapses of statutes of limitations				1,400,000
Income Tax Expense
Income tax contingency disclosures
Unrecognized tax benefits: Changes due to lapses of statutes of limitations	16,000,000	23,200,000	35,700,000
Interest expense related to unrecognized tax benefits	1,400,000	2,100,000	1,400,000
Income Tax Expense \| Forecast \| Subsequent event
Income tax contingency disclosures
Unrecognized tax benefits: Changes due to lapses of statutes of limitations				2,700,000
Income Tax Expense \| State
Income tax contingency disclosures
Unrecognized tax benefits: Changes due to lapses of statutes of limitations			$800,000

Supplemental_Cash_Flow_Informa2

Supplemental Cash Flow Information (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Supplemental Cash Flow Information
Income taxes paid, net of refunds	$57,728	$65,511	$57,663
Interest paid	3,389	2,264	1,594
Assets acquired through capital leases	$2,810	$29,739

Commitments_and_Contingencies_1

Commitments and Contingencies (Details) (USD $)	12 Months Ended	1 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Sep. 30, 2009
Specialty Pharmaceutical Management
Insurance
Period for which insurance policies have been renewed	1 year
General liability
Insurance
Period for which insurance policies have been renewed	1 year
Per claim un-aggregated self-insured retention	0.05
General liability \| Specialty Pharmaceutical Management
Insurance
Per claim self-insured retention	0.05
Aggregated self-insured retention	0.25
Professional liability
Insurance
Period for which insurance policies have been renewed	1 year
Per claim un-aggregated self-insured retention	0.05
Professional liability \| Behavioral health direct care facilities
Insurance
Period for which insurance policies have been renewed			5 years
Per claim un-aggregated self-insured retention			0.5
Period for which insurance policies have been extended		2 years
Per claim un-aggregated self-insured retention for extended insurance policies		0.5
Professional liability \| Specialty Pharmaceutical Management
Insurance
Per claim self-insured retention	0.05
Aggregated self-insured retention	0.25
Managed care liability
Insurance
Period for which insurance policies have been renewed	1 year
Per claim un-aggregated self-insured retention	1
Per class action claim un-aggregated self-insured retention	10

Commitments_and_Contingencies_2

Commitments and Contingencies (Details 2) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Future minimum payments under operating leases
2015	$16.50
2016	16.6
2017	14.4
2018	12.4
2019	11.2
2020 and beyond	25.7
Future minimum rentals to be received under operating subleases
2015	0.1
2016	0.1
2017	0.1
2018	0.2
2019	0.1
Rent expense	17.4	15.2	19.5
Future minimum payments under capital leases net of leasehold improvement allowances
2015	0.6
2016	2.3
2017	3.5
2018	3.4
2019	2.9
2020 and beyond	18.4
Capital lease obligations imputed interest	$6.50

Commitments_and_Contingencies_3

Commitments and Contingencies (Details 3) (USD $)	12 Months Ended
Commitments and Contingencies (Details 3) (USD $)	Dec. 31, 2014
Restructuring activities
Cumulative restructuring costs incurred	$14,900,000
Commercial
Restructuring activities
Restructuring costs incurred for the period	400,000
Cumulative restructuring costs incurred	5,100,000
Public Sector
Restructuring activities
Restructuring costs incurred for the period	200,000
Cumulative restructuring costs incurred	7,000,000
Corporate
Restructuring activities
Restructuring costs incurred for the period	-1,000,000
Cumulative restructuring costs incurred	2,800,000
Employee termination costs
Restructuring activities
Restructuring costs incurred for the period	-1,700,000
Restructuring Reserve [Roll Forward]
Liability for employee termination costs at beginning of the period	12,469,000
Additions to restructuring reserve - expensed	1,988,000
Payments	-9,810,000
Liability released	-3,696,000
Liability for employee termination costs at end of the period	951,000
Employee termination costs \| Commercial
Restructuring Reserve [Roll Forward]
Liability for employee termination costs at beginning of the period	4,744,000
Additions to restructuring reserve - expensed	850,000
Payments	-3,756,000
Liability released	-1,188,000
Liability for employee termination costs at end of the period	650,000
Employee termination costs \| Public Sector
Restructuring Reserve [Roll Forward]
Liability for employee termination costs at beginning of the period	4,296,000
Additions to restructuring reserve - expensed	797,000
Payments	-3,596,000
Liability released	-1,196,000
Liability for employee termination costs at end of the period	301,000
Employee termination costs \| Corporate
Restructuring Reserve [Roll Forward]
Liability for employee termination costs at beginning of the period	3,429,000
Additions to restructuring reserve - expensed	341,000
Payments	-2,458,000
Liability released	-1,312,000
Lease termination and exit costs
Restructuring activities
Restructuring costs incurred for the period	$1,300,000

Business_Segment_Information_D

Business Segment Information (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Operating results by business segment
Managed care and other revenue	$753,489	$703,020	$682,274	$829,591	$823,627	$770,113	$746,720	$722,589	$2,968,374		$3,063,049		$2,857,099
PBM and Dispensing revenue	228,970	220,150	205,740	136,884	184,583	103,485	96,028	99,172	791,744		483,268		350,298
Cost of care	-506,090	-495,180	-481,617	-605,708	-605,782	-564,537	-537,630	-525,027	-2,088,595		-2,232,976		-2,071,890
Cost of goods sold	-212,905	-202,180	-192,566	-125,298	-174,411	-97,503	-90,175	-93,512	-732,949		-455,601		-328,414
Direct service costs and other	-202,814	-176,928	-179,034	-164,722	-178,588	-156,834	-144,497	-139,627	-723,498	[1]	-619,546	[1]	-557,512	[1]
Stock compensation expense									40,584		21,252		17,783
Changes in fair value of contingent consideration									6,172
Less: non-controlling interest segment profit (loss)									-5,087
Segment profit (loss)									266,919		259,446		267,364
Operating segments \| Commercial
Operating results by business segment
Managed care and other revenue									673,996		766,841		728,512
Cost of care									-364,780		-469,478		-437,518
Direct service costs and other									-160,341		-172,491		-172,035
Stock compensation expense									618		503		532
Changes in fair value of contingent consideration									38
Segment profit (loss)									149,531		125,375		119,491
Operating segments \| Public Sector
Operating results by business segment
Managed care and other revenue									1,635,609		1,757,933		1,620,875
Cost of care									-1,385,858		-1,523,023		-1,413,320
Direct service costs and other									-187,966		-122,819		-89,129
Stock compensation expense									894		1,038		1,111
Less: non-controlling interest segment profit (loss)									-5,087
Segment profit (loss)									67,766		113,129		119,537
Operating segments \| Specialty Solutions
Operating results by business segment
Managed care and other revenue									471,300		375,818		349,133
Cost of care									-339,714		-247,496		-228,383
Direct service costs and other									-71,785		-57,334		-55,418
Stock compensation expense									1,387		1,630		1,567
Segment profit (loss)									61,188		72,618		66,899
Operating segments \| Pharmacy Management
Operating results by business segment
Managed care and other revenue									205,524		228,705		227,669
PBM and Dispensing revenue									844,512		483,268		350,298
Cost of care									-16,298		-59,227		-61,759
Cost of goods sold									-784,758		-455,601		-328,414
Direct service costs and other									-182,833		-128,427		-111,593
Stock compensation expense									28,829		1,172		1,007
Changes in fair value of contingent consideration									6,134
Segment profit (loss)									101,110		69,890		77,208
Corporate and Elimination
Operating results by business segment
Managed care and other revenue									-18,055		-66,248		-69,090
PBM and Dispensing revenue									-52,768
Cost of care									18,055		66,248		69,090
Cost of goods sold									51,809
Direct service costs and other									-120,573		-138,475		-129,337
Stock compensation expense									8,856		16,909		13,566
Segment profit (loss)									($112,676)		($121,566)		($115,771)

[1]	Includes stock compensation expense of $17,783, $21,252 and $40,584 for the years ended DecemberB 31, 2012, 2013 and 2014, respectively.

Business_Segment_Information_D1

Business Segment Information (Details 2) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Segment reporting information
Restricted cash	$215,325	$236,696	$226,554
Net accounts receivable	353,713	238,185	138,253
Investments	267,654	208,313	233,690
Pharmaceutical inventory	39,375	49,609	45,727
Goodwill	566,106	488,206	426,939
Other intangible assets, net	133,718	69,694	34,935
Specialty Solutions
Segment reporting information
Goodwill	104,549	104,549
Pharmacy Management
Segment reporting information
Goodwill	311,636	242,290
Operating segments \| Commercial
Segment reporting information
Restricted cash	9,515	25,107	18,254
Net accounts receivable	56,056	50,407	39,678
Investments	18,133	16,491	21,273
Goodwill	129,042	120,485	120,485
Other intangible assets, net	2,031	1,076	2,152
Operating segments \| Public Sector
Segment reporting information
Restricted cash	204,166	196,651	147,766
Net accounts receivable	98,480	62,977	27,415
Investments	124,824	92,966	101,093
Goodwill	20,879	20,882
Other intangible assets, net	6,471	4,590
Operating segments \| Specialty Solutions
Segment reporting information
Net accounts receivable	15,952	7,368	7,580
Pharmaceutical inventory		49,609	45,727
Goodwill	104,549	104,549	104,549
Other intangible assets, net	2,338	6,123	7,877
Operating segments \| Pharmacy Management
Segment reporting information
Net accounts receivable	180,535	115,527	65,755
Pharmaceutical inventory	39,375
Goodwill	311,636	242,290	201,905
Other intangible assets, net	122,878	57,905	24,906
Corporate and Elimination
Segment reporting information
Restricted cash	1,644	14,938	60,534
Net accounts receivable	2,690	1,906	-2,175
Investments	$124,697	$98,856	$111,324

Business_Segment_Information_D2

Business Segment Information (Details 3) (USD $)	3 Months Ended								12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of segment profit to income before income taxes
Segment profit									$266,919	$259,446	$267,364
Stock compensation expense	-14,601	-11,961	-9,550	-4,472	-6,488	-4,524	-4,602	-5,638	-40,584	-21,252	-17,783
Changes in fair value of contingent consideration									-6,172
Non-controlling interest segment profit (loss)									-5,087
Depreciation and amortization	-24,405	-23,956	-22,480	-20,229	-21,224	-17,654	-16,946	-16,170	-91,070	-71,994	-60,488
Interest expense	-1,668	-2,879	-2,004	-836	-809	-789	-792	-610	-7,387	-3,000	-2,247
Interest and other income	474	241	275	311	983	291	358	353	1,301	1,985	2,019
Income before income taxes	$35,051	$22,288	$10,588	$49,993	$28,379	$36,572	$53,066	$47,168	$117,920	$165,185	$188,865

Selected_Quarterly_Financial_D2

Selected Quarterly Financial Data (Unaudited) (Details) (USD $)	3 Months Ended								12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Net revenue:
Managed care and other	$753,489	$703,020	$682,274	$829,591	$823,627	$770,113	$746,720	$722,589	$2,968,374		$3,063,049		$2,857,099
PBM and dispensing	228,970	220,150	205,740	136,884	184,583	103,485	96,028	99,172	791,744		483,268		350,298
Total net revenue	982,459	923,170	888,014	966,475	1,008,210	873,598	842,748	821,761	3,760,118		3,546,317		3,207,397
Cost and expenses:
Cost of care	506,090	495,180	481,617	605,708	605,782	564,537	537,630	525,027	2,088,595		2,232,976		2,071,890
Cost of goods sold	212,905	202,180	192,566	125,298	174,411	97,503	90,175	93,512	732,949		455,601		328,414
Direct service costs and other operating expenses (1)	202,814	176,928	179,034	164,722	178,588	156,834	144,497	139,627	723,498	[1]	619,546	[1]	557,512	[1]
Depreciation and amortization	24,405	23,956	22,480	20,229	21,224	17,654	16,946	16,170	91,070		71,994		60,488
Interest expense	1,668	2,879	2,004	836	809	789	792	610	7,387		3,000		2,247
Interest and other income	-474	-241	-275	-311	-983	-291	-358	-353	-1,301		-1,985		-2,019
Total costs and expenses	947,408	900,882	877,426	916,482	979,831	837,026	789,682	774,593	3,642,198		3,381,132		3,018,532
Income before income taxes	35,051	22,288	10,588	49,993	28,379	36,572	53,066	47,168	117,920		165,185		188,865
Provision for income taxes	15,305	-3,490	6,261	25,613	9,888	-10,660	21,586	19,110	43,689		39,924		37,838
Net income	19,746	25,778	4,327	24,380	18,491	47,232	31,480	28,058	74,231		125,261		151,027
Less: net income (loss) attributable to non-controlling interest	-1,819	-1,355	-659	-1,340					-5,173
Net income attributable to Magellan Health, Inc.	21,565	27,133	4,986	25,720					79,404		125,261		151,027
Weighted average number of common shares outstanding-basic	25,558	26,703	27,144	27,370	27,285	26,990	26,829	27,110	26,689		27,054		27,386
Weighted average number of common shares outstanding-diluted	26,382	27,242	27,765	28,051	28,008	27,704	27,338	27,648	27,355		27,675		27,882
Net income per common share-basic:	$0.84	$1.02	$0.18	$0.94	$0.68	$1.75	$1.17	$1.03	$2.98		$4.63		$5.51
Net income per common share-diluted:	$0.82	$1	$0.18	$0.92	$0.67	$1.70	$1.15	$1.01	$2.90		$4.53		$5.42
Stock compensation expense	$14,601	$11,961	$9,550	$4,472	$6,488	$4,524	$4,602	$5,638	$40,584		$21,252		$17,783

[1]	Includes stock compensation expense of $17,783, $21,252 and $40,584 for the years ended DecemberB 31, 2012, 2013 and 2014, respectively.

SCHEDULE_IIVALUATION_AND_QUALI1

SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) (Allowance for doubtful accounts, USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Allowance for doubtful accounts
Changes in valuation and qualifying accounts
Balance at Beginning of Period	$5,447		$4,612		$3,336
Charged to Costs and Expenses	764		1,205		1,947
Charged to Other Accounts	-1,934		-126		-346
Addition	107	[1]	130	[1]
Deduction	-337		-374		-325
Balance at End of Period	$4,047		$5,447		$4,612

[1]	To establish a reserve on preacquisition balances.