Exhibit 99.1

NEWS RELEASE

Media Contact: Laura Schuntermann, lgschuntermann@magellanhealth.com, (860) 507-1822

Investor Contact: Renie Shapiro Silver, rshapiro@magellanhealth.com, (877) 645-6464

Magellan Health Reports Fourth Quarter and Full Year 2014 Financial Results

Scottsdale, Ariz. — February 26, 2015 — Magellan Health, Inc. (NASDAQ: MGLN) today reported financial results for the fourth quarter and full year 2014, as summarized below. For the year ended December 31, 2014, the company reported net revenue of $3.76 billion, segment profit of $266.9 million, and net income of $79.4 million, or $2.90 per diluted common share.

Financial Results (1)

·                  Fourth quarter revenue decreased primarily from the loss of revenues associated with terminated contracts, partially offset by new business, same store growth and rate increases, the impact of Health Insurer Fee revenues, and the inclusion of revenues from CDMI.

·                  Fourth quarter segment profit increased mainly due to stronger results in the Pharmacy Management and Commercial segments. Fourth quarter results include approximately $20 million of favorable out-of-period items, of which approximately $15 million was in the Public Sector segment.

·                  Fourth quarter net income, earnings per share, adjusted net income and adjusted earnings per share increased mainly due to segment profit, offset by a higher effective tax rate resulting from the non-deductibility of Health Insurer Fees,  and increased valuation allowances in the current year for certain deferred tax assets.

(1) Included in the tables issued with this press release are the reconciliations from the three non-GAAP measures discussed above to the corresponding GAAP measures.

(2) Adjusted net income and adjusted earnings per share reflect certain adjustments made for acquisitions completed after January 1, 2013 to exclude non-cash stock compensation expense resulting from restricted stock purchases by sellers, as well as amortization of identified acquisition intangibles and changes in the fair value of contingent consideration recorded in relation to acquisitions.

(3) Segment profit is equal to net revenues less the sum of cost of care, cost of goods sold, direct service costs and other operating expenses, and includes income from unconsolidated subsidiaries, but excludes segment profit or loss from non-controlling interests held by other parties, as well as stock compensation expense and changes in the fair value of contingent consideration recorded in relation to acquisitions.

As of December 31, 2014, the company had unrestricted cash and investments of $346.9 million.

“2014 was an important year for Magellan,” said Barry M. Smith, chairman and chief executive officer of Magellan Health. “We continued to innovate in products and services for special populations. At the same time, we achieved growth as a whole and across our business units, with significant progress made in Magellan Complete Care and Magellan Rx Management.”

“I am pleased with our accomplishments and the unique set of capabilities we have brought to the marketplace. We offer meaningful solutions that address challenges faced by our members and customers, while helping individuals navigate the complex healthcare system.”

Results and Outlook

“Magellan posted strong financial results in 2014, particularly in our Commercial and Pharmacy Management segments,” said Jonathan N. Rubin, chief financial officer. “The pipeline of opportunities for 2015 and 2016 is strong across all market segments, and we continue to see interest in both our traditional and new products. Additionally, with the growth we achieved this year, our pharmacy business, with product lines comprising a full-service PBM, generated over a billion dollars of revenue and over $100 million of segment profit in 2014.”

“Relative to 2015, we are maintaining the ranges discussed in our December guidance call for net revenue in the range of $4.25 billion to $4.49 billion, net income of $51 million to $67 million, adjusted net income of $88 million to $100 million, and segment profit of $265 million to $285 million. We are also maintaining our guidance for cash flow from operations in the range of $171 million to $195 million. Taking into account the impact of share repurchase activity through February 23, 2015, but not considering any potential future share repurchases, our guidance range for fully diluted EPS is estimated to be $1.93 to $2.54 and for fully diluted adjusted EPS of $3.33 to $3.79. These EPS ranges are based on 26.4 million average fully diluted shares.”

Earnings Conference Call

Management will host a conference call at 10 a.m. Eastern time on Thursday, February 26, 2015. To participate in the conference call, interested parties should call 1-800-857-1812 and reference the pass code Fourth Quarter 2014 Earnings Call approximately 15 minutes before the start of the call. The conference call will also be available via a live webcast at Magellan’s investor relations page at MagellanHealth.com.

About Magellan Health: Headquartered in Scottsdale, Ariz., Magellan Health, Inc. is a healthcare management company that focuses on fast-growing, complex and high-cost areas of healthcare, with an emphasis on special population management. Magellan delivers innovative solutions to improve quality outcomes and optimize the cost of care for those we serve. Magellan’s customers include health plans, managed care organizations, insurance companies, employers, labor unions, various military and government agencies, third party administrators, consultants and brokers. For more information, visit MagellanHealth.com.

Cautionary Statement

This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 and the Securities Act of 1933, as amended, which involve a number of risks and uncertainties.  All statements, other than statements of historical information provided herein, may be deemed to be forward-looking statements including, without limitation, statements regarding estimates of 2015 net revenue, net income, adjusted net income, segment profit, cash flow from operations, earnings per share, adjusted earnings per share, and capital deployment, growth and strategy. These statements are based on management’s analysis, judgment, belief and expectation only as of the date hereof, and are subject to uncertainty and changes in circumstances. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “may,” “should,” “could,” “estimate,” “intend” and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially due to, among other things, the possible election of certain of the company’s customers to manage the healthcare services of their members directly; changes in rates paid to and/or by the company by customers and/or providers; higher utilization of health care services by the company’s risk members; delays, higher costs or inability to implement new business or other company initiatives; the impact of changes in the contracting model for Medicaid contracts; termination or non-renewal of customer contracts; the impact of new or amended laws or regulations; governmental inquiries; litigation; competition; operational issues; health care reform; and general business conditions. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included within the company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on March 3, 2014, the company’s subsequent Quarterly Reports on Form 10-Q filed during 2014, and the company’s Annual Report on Form 10-K for the year ended December 31, 2014, expected to be filed with the Securities and Exchange Commission and posted on the company’s website later today. Readers are cautioned not to place undue reliance on these forward-looking statements. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of this release. Segment profit, adjusted net income and adjusted earnings per share information referred to herein may be considered to be non-GAAP financial measures. Further information regarding these measures, including the reasons management considers this information useful to investors, are included in the company’s most recent Annual Report on Form 10-K and on subsequent Form 10-Qs.

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MAGELLAN HEALTH, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except per share amounts)

(1)              For a more detailed discussion of Magellan Health’s results for the year ended December 31, 2014, refer to the Company’s Annual Report on Form 10-K, which will be filed with the SEC on, or shortly after, Thursday, February 26, 2015, and the live broadcast or taped replay of the Company’s earnings conference call on Thursday, February 26, 2015, which will be available at www.MagellanHealth.com.

(2)              Includes stock compensation expense of $6,488 and $14,601 for the three months ended December 31, 2013 and 2014, respectively, and $21,252 and $40,584 for the years ended December 31, 2013 and  2014, respectively.

(3)              Net of income tax benefit of $13 and $34 for the three months ended December 31, 2013 and 2014, respectively, and $38 and $33 for the years ended December 31, 2013 and 2014, respectively.

MAGELLAN HEALTH, INC. AND SUBSIDIARIES

NON-GAAP MEASURES

(In thousands, except per share amounts)

(1)              The Company’s Annual Report on Form 10-K for the year ended December 31, 2014 will be filed with the SEC on, or shortly after, Thursday, February 26, 2015.

MAGELLAN HEALTH, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(1)              The Company’s Annual Report on Form 10-K for the year ended December 31, 2014 will be filed with the SEC on, or shortly after, Thursday, February 26, 2015. 

(2)              Includes the net shift of restricted funds between cash and investments that results in an operating cash flow change that is directly offset by an investing cash flow change.  During the years ended December 31, 2013 and 2014, restricted cash of $29,208 and $25,997, respectively, was shifted to restricted investments that resulted in an operating cash flow source.

MAGELLAN HEALTH, INC. AND SUBSIDIARIES

CONSOLIDATED OPERATING RESULTS BY BUSINESS SEGMENT

(In thousands)

(1)              The Company’s Annual Report on Form 10-K for the year ended December 31, 2014 will be filed with the SEC on, or shortly after, Thursday, February 26, 2015.

(2)              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 Magellan’s employees covered under its medical plan.  As such, revenue, cost of care, cost of goods sold and direct service costs and other operating expenses related to these arrangements are eliminated.

(3)              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.

(4)              The non-controlling interest portion of AlphaCare’s segment profit (loss) is excluded from the computation of segment profit.