Magellan Federal Selected to Administer Military and Family Life Counseling Program for U.S. Department of Defense

Rhea-AI Summary

Magellan Health (NASDAQ: MGLN) announced that its subsidiary, Magellan Federal, has secured a renewed contract for the Military and Family Life Counseling (MFLC) program. This contract, awarded by the General Services Administration, has a total estimated value of approximately $2 billion, covering a base period and four optional extensions. Magellan Federal will deploy over 1,200 counselors across military bases in the U.S., Europe, and Africa, providing non-medical counseling services to enhance service members' readiness and quality of life.

Positive

• Secured a contract worth approximately $2 billion over multiple years.
• Continues to strengthen presence in military community with non-medical counseling services.
• Deployment of over 1,200 qualified counselors to support military members and families.

Negative

• None.

Magellan Health, Inc. (NASDAQ: MGLN) today announced that its subsidiary Magellan Federal has been selected to once again serve as a contractor for the Military and Family Life Counseling (MFLC) program, which provides counseling for adults and children in the military community. The contract was awarded by the General Services Administration, Federal Systems Integration and Management Center (FEDSIM), supporting the Office of the Deputy Assistant Secretary of Defense for Military Community and Family Policy (MC&FP), Office of Military Community Support Programs (MCSP).

“We are honored that the government continues to trust in Magellan Federal’s performance and capabilities to deliver on the MFLC mission,” said Oscar Montes, chief executive officer of Magellan Federal. “Our rotational, surge and on-demand counselors, field leadership and Program Management Office staff are deeply committed to improving the mission readiness of our nation’s service members and their families through delivery of the highest quality non-medical counseling services.”

Created by the Department of Defense in 2004, the MFLC program provides short-term, non-medical counseling services to active duty military, National Guard, and Reserves members serving in the United States and abroad, as well as their family members. Magellan Federal has supported the MFLC program since 2012, delivering valuable face-to-face non-medical counseling services, briefings, and presentations to the military community both on and off the installation. Magellan Federal’s proven services were strengthened by the company’s response to the Coronavirus pandemic including the swift and effective move to video and telephonic counseling and ongoing innovative solutions to provide support in the rapidly changing environment.

Magellan Federal will deliver counseling services on military bases across the Eastern half of the United States and at overseas installations in Europe and Africa. More than 1,200 qualified counselors will provide services to ensure readiness of the force, decrease distractions and enhance the quality of life for service members and their families by helping them address life challenges such as relocation adjustment, mobilization, deployment stress, separation and homesickness, grief and loss, isolation, reunion, anxiety and more.

“In addition to continuing our focus on the day-to-day operation of the program, we are excited to bring additional innovations to this next generation contract. As a company that is almost entirely focused on the full spectrum of behavioral health, including cognitive enhancement, emotional wellness, resilience, and suicide prevention, I can think of no greater customer for Magellan Federal’s offerings than the men and women who defend our nation,” added Montes.

The contract includes a 12-month base period with four 12-month option periods and two potential additional 12-month award term incentive periods. The contract has a total estimated ceiling value of approximately $2 billion, including the base year and four additional one-year option periods exercisable by the government annually. Two 12 month performance-based Award Term Incentive Periods are included in the contract and may take place only after all option periods are exercised.

About Magellan Federal: Magellan Federal provides full-scale, comprehensive programs on 300 bases, installations, and agencies around the world. The company delivers personalized health and resilience solutions for our nation’s most complex and sensitive federal programs. Magellan Federal has a global workforce of more than 2,700 dedicated to providing better and more affordable care in the fast growing, highly complex, high-cost areas of healthcare. Magellan Federal is a registered d/b/a of Armed Forces Services Corporation, a wholly-owned subsidiary of Magellan Health, Inc. For more information, visit MagellanFederal.com.

About Magellan Health: Magellan Health, Inc. is a leader in managing the fastest growing, most complex areas of health, including special populations, complete pharmacy benefits and other specialty areas of healthcare. Magellan supports innovative ways of accessing better health through technology, while remaining focused on the critical personal relationships that are necessary to achieve a healthy, vibrant life. Magellan's customers include health plans and other managed care organizations, employers, labor unions, various military and governmental agencies and third-party administrators. For more information, visit MagellanHealth.com.

Forward-Looking Statements

This press release includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. 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 most recent Annual Report on Form 10-K, quarterly report on Form 10-Q, and subsequent reports on Forms 10-Q and 8-K. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

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FAQ

What is the significance of Magellan Health's new contract for MGLN?

The new contract, worth approximately $2 billion, allows Magellan Federal to continue providing vital counseling services to military members, positively impacting MGLN's revenue.

How many counselors will Magellan Federal deploy under the MFLC program?

Magellan Federal will deploy over 1,200 qualified counselors to military bases in the U.S., Europe, and Africa.

When was the last contract awarded to Magellan Federal for the MFLC program?

The last contract was awarded to Magellan Federal by the General Services Administration.

What services does the MFLC program provide?

The MFLC program provides short-term, non-medical counseling services for military personnel and their families.

How long is the contract period for Magellan's MFLC program?

The contract includes a 12-month base period and four optional 12-month extensions.