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
OMB APPROVAL
OMB Number: 3235-0287
Expires: January 31, 2005
Estimated average burden hours per response... 0.5

(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)
06/20/2005
(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 06/20/2005   X(1)   29,132 A $ 11.91 77,181 (4) D  
Ordinary Common Stock, $0.01 par value 06/20/2005   X(1)   13,790 A $ 10.43 90,971 (5) D  
Ordinary Common Stock, $0.01 par value 06/20/2005   S(1)   15,000 D $ 34.26 75,971 D  
Ordinary Common Stock, $0.01 par value 06/20/2005   S(1)   6,300 D $ 34.303 69,671 D  
Ordinary Common Stock, $0.01 par value 06/20/2005   S(1)   15,000 D $ 34.327 54,671 D  
Ordinary Common Stock, $0.01 par value 06/20/2005   S(1)   15,000 D $ 34.223 39,671 D  
Ordinary Common Stock, $0.01 par value 06/20/2005   S(1)   25,000 D $ 34.351 14,671 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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 control number. SEC 1474 (9-02)

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 06/20/2005   X(1)     29,132 01/05/2005 01/05/2014 Ordinary Common Stock 29,132 $ 0 (2) 165,201 (3) D  
Stock Option (right to buy) $ 10.43 06/20/2005   X     13,790 01/05/2005 01/05/2014 Ordinary Common Stock 13,790 $ 0 (2) 357,913 (6) 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   06/22/2005
**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 half on January 5, 2006 and 2007.
(4) Includes 48,049 shares of stock owned prior to current transaction
(5) Includes 48049 shares of stock owned prior to this transaction as well as 29,132 shares acquired as part of transaction reported above on Line 1.
(6) Total number of shares exercisable on 1/5/05 were 123,901 shares of which 13,790 have been exercised. There are currently 110,111 shares available for exercise. The remainder of 247,802 options will vest in increments of one half on January 5, 2006 and 2007.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.