Magellan’s Plan to Restructure Wins Judge’s Approval

A U.S. bankruptcy judge in Manhattan accepted Magellan’s plan to reorganize itself in an effort to put the company on more solid financial footing. The restructuring wipes out about $600 million in debt, according to the Baltimore Sun, which reported the story on October 9. Magellan told the Baltimore Sun that it does not plan to improve its bottom line by cutting payments to clinicians, and Steve J. Schulman, Magellan’s CEO, emphasized he wants to maintain good relations with clinicians. Magellan told the Office of Healthcare Systems and Financing on October 9 that the company will not cut fees to psychiatrists or other clinicians under the “new” Magellan. To date, APA’s Managed Care Help Line has received no complaints about bills not being paid by Magellan.

APA members who encounter any problems with Magellan’s claims processing should contact the Help Line at (800) 343-4671.