Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
LERER RENE
   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)
President & COO
(Last)
(First)
(Middle)
16 MUNSON ROAD		 3. Date of Earliest Transaction (Month/Day/Year)
06/16/2005
(Street)

FARMINGTON, CT 06032		 4. If Amendment, Date 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
(City)
(State)
(Zip)
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)
Code V Amount (A) or (D) Price
Ordinary Common Stock, $0.01 par value 06/16/2005   X(1)   82,601 A $ 11.91 147,650 (4) D  
Ordinary Common Stock, $0.01 par value 06/16/2005   X(1)   38,199 A $ 11.91 185,849 (5) D  
Ordinary Common Stock, $0.01 par value 06/16/2005   S(1)   10,000 D $ 34.854 175,849 D  
Ordinary Common Stock, $0.01 par value 06/16/2005   S(1)   10,000 D $ 34.87 165,849 D  
Ordinary Common Stock, $0.01 par value 06/16/2005   S(1)   15,000 D $ 34.93 150,849 D  
Ordinary Common Stock, $0.01 par value 06/16/2005   S(1)   15,000 D $ 34.952 135,849 D  
Ordinary Common Stock, $0.01 par value 06/16/2005   S(1)   25,000 D $ 34.943 110,849 D  
Ordinary Common Stock, $0.01 par value 06/16/2005   S(1)   25,000 D $ 34.91 85,849 D  
Ordinary Common Stock, $0.01 par value 06/16/2005   S(1)   15,000 D $ 34.971 70,849 D  
Ordinary Common Stock, $0.01 par value 06/16/2005   S(1)   7,800 D $ 34.95 63,049 D  
Ordinary Common Stock, $0.01 par value 06/16/2005   S(1)   15,000 D $ 34.99 48,049 D  

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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 Underlying Securities
(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 of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option (right to buy) $ 11.91 06/16/2005   X(1)     82,601 01/05/2005 01/05/2014 Ordinary Common Stock 82,601 $ 0 (2) 165,201 (3) D  
Stock Option (right to buy) $ 11.91 06/16/2005   X(1)     38,199 01/05/2005(6) 01/05/2014 Ordinary Common Stock 38,199 $ 0 (2) 209,603 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
LERER RENE
16 MUNSON ROAD
FARMINGTON, CT 06032		   X     President & COO  

Signatures

 /s/ Rene Lerer   06/17/2005
**Signature of Reporting Person Date

Explanation of Responses:

* 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).
(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) Not applicable.
(3) The remainder of 165,201 options will vest in increments of one third on January 5, 2006, 2007 and 2008.
(4) Includes 65,049 shares of stock owned prior to current transaction
(5) Includes 65,049 shares of stock owned prior to this transaction as well as 82,601 shares acquired as part of transaction reported in Line 1 above.
(6) Total number of shares exercisable on 1/5/05 were 82,601 of which 38,199 have been exercised. There are currently 44,402 shares available for exercise. The remainder of 165,201options will vest in increments of one third on January 5, 2006, 2007 and 2008.

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