SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

SHULMAN STEVEN J

(Last)

(First)

(Middle)

55 NOD ROAD

(Street)

AVON

06001

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
MAGELLAN HEALTH SERVICES INC [ MGLN ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	Chairman and CEO

3. Date of Earliest Transaction (Month/Day/Year)
09/01/2006

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Ordinary Common Stock, 0.01 par value	09/01/2006		X⁽¹⁾		5,535	A	$11.91	162,419⁽²⁾	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		100	D	$47.78	162,319	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		100	D	$47.71	162,219	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		200	D	$47.66	162,019	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		100	D	$47.65	161,919	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		100	D	$47.59	161,819	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		100	D	$47.58	161,719	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		500	D	$47.57	161,219	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		700	D	$47.55	160,519	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		200	D	$47.54	160,319	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		100	D	$47.53	160,219	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		200	D	$47.52	160,019	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		200	D	$47.51	159,819	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		200	D	$47.49	159,619	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		100	D	$47.48	159,519	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		500	D	$47.45	159,019	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		100	D	$47.41	158,919	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		400	D	$47.4	158,519	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		700	D	$47.39	157,819	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		200	D	$47.38	157,619	D
Ordinary Common Stock, $0.01 par value	09/01/2006		S⁽¹⁾		735	D	$47.35	156,884	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Stock Option (right to buy)	$11.91	09/01/2006		X⁽¹⁾		5,535		01/05/2006	12/31/2006	Common Stock	5,535	$0⁽³⁾	214,801⁽⁴⁾	D

Explanation of Responses:

1. This transaction was effectuated pursuant to a Rule 10b-5-1 plan and, accordingly, not on a discretionary basis by the reporting person.

2. Includes 156,884 shares owned prior to current transaction, of which 18,339 shares are unvested restricted stock.

3. No price was applicable to the acquisition of this security.

4. Of the 214,801 options in this tranche, 8,299 are exercisable until 12/31/06. The remainder of 206,502 options in this tranche will become exercisable on January 5, 2007 and until December 31, 2007.

	Steven J Shulman	09/05/2006
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.