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2 Magellan units chosen for health programs in Pennsylvania, Virginia

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2 Magellan units chosen for health programs in Pennsylvania, Virginia

The County of Cambria, Pa., selected Magellan Behavioral Health of PA Inc. to be the managed care organization of the county's HealthChoices Behavioral Health program.

The contract will be for a two-year period starting July 1, 2017, with the potential for an additional one-year renewal period. The contract is expected to generate annual revenue of about $35 million to $40 million.

The contract represents the sixth county in the Commonwealth of Pennsylvania for which the company is the behavioral health managed care organization. Magellan Behavioral Health of Pennsylvania's combined annualized revenues for the six counties is projected to be about $500 million.

Also, the Commonwealth of Virginia chose Magellan Complete Care of Virginia to participate in all six regions of Virginia's managed long-term services and supports initiative, the Commonwealth Coordinated Care Plus Program. The company is one of seven plans selected to serve about 213,000 individuals with complex care needs through an integrated care model, which will be phased in regionally starting July 2017.

The overall program is expected to generate annual revenues of about $3.5 billion. The commonwealth is determining the allocation among the seven plans, and there can be no assurance that the business will be allocated equally between the seven plans.

The arrangements for Magellan Behavioral Health of Pennsylvania and Magellan Complete Care of Virginia are subject to final negotiations and execution, and there can be no assurance that final agreements will be reached. The companies are units of Magellan Health Inc.