Magellan and Performant Announce Strategic Relationship to Provide Payment Integrity Recovery Services for Specialty Pharmacy

  Magellan and Performant Announce Strategic Relationship to Provide Payment
  Integrity Recovery Services for Specialty Pharmacy

Business Wire

AVON, Conn. -- February 6, 2013

Today, Magellan Health Services Inc. (NASDAQ: MGLN) and Performant Financial
Corporation (NASDAQ: PFMT) jointly announced a strategic relationship to offer
payment integrity recovery services to Magellan’s commercial specialty
pharmacy customers through Magellan Pharmacy Solutions. Specialty pharmacy
overpayment recovery consists of auditing customer claims data in order to
identify inappropriate coding, billing and payment of specialty pharmacy
claims. Magellan and Performant piloted the combined audit and recovery
services in 2012 with select customers and will now expand this offering to
all Magellan Pharmacy Solutions commercial customers.

Magellan Pharmacy Solutions’ SVP of Strategy and Business Development Kjel
Johnson said, “Magellan is continuing its innovative approach to the specialty
pharmacy market by looking at new opportunities for additional cost savings
for our customers through recovery solutions to further enhance the services
we offer.”

In 2011, the United States spent $80 billion on specialty pharmaceuticals and
healthcare consulting firms are predicting global revenues in the specialty
sector will surpass $160 billion in 2013.  An industry report suggests that
specialty pharmacy costs may account for 40 percent of total drug spending by

“Industry estimates place claim overpayments on specialty pharmaceuticals at
three to ten percent annually, which potentially amounts to millions of
dollars in savings for a plan sponsor each year, so we’re excited about the
potential implications for our customers,” said Johnson.

Performant Financial’s Chief Executive Officer Lisa Im said, “We’re very
enthusiastic about expanding our relationship with Magellan, a true leader in
the industry, and serving the specialty pharmacy market. We have refined our
recovery services over many years and in multiple industries, so meeting this
unmet market demand is a natural fit with our strategy.”

About Magellan Health Services

Headquartered in Avon, Conn., Magellan Health Services Inc. is a leading
specialty health care management organization with expertise in managing
behavioral health, radiology and pharmacy programs. Magellan delivers
innovative solutions to improve quality outcomes and optimize the cost of care
for those we serve. As of September 30, 2012, Magellan's customers include
health plans, employers and government agencies, serving approximately 33.8
million members in our behavioral health business, 17.3 million members in our
radiology benefits management segment, and 8 million members in our medical
pharmacy management product. In addition, the specialty pharmaceutical segment
served 40 health plans and several pharmaceutical manufacturers and state
Medicaid Programs. The Company's Medicaid Administration segment served 24
states and the District of Columbia. For more information, visit

About Performant Financial Corporation

Performant Financial Corporation is a leading provider of technology-enabled
recovery and related analytics services. The Company's services help identify
and recover delinquent or defaulted assets and improper payments for various
government, healthcare and financial services markets in the United States.
The Company was founded in 1976 and is headquartered in Livermore, California.
For more information, visit

Forward-Looking Statements

This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, including
statements regarding the business opportunities available to Magellan Health
Services and Performant in connection with the recovery of overpayments
related to specialty pharmaceuticals. These forward-looking statements are
based on current expectations, estimates, assumptions and projections that are
subject to change and actual results may differ materially from the
forward-looking statements. Factors that could cause actual results to differ
materially include, but are not limited to, those identified under the caption
“Risk Factors” in the periodic reports that Magellan Health Services or
Performant files with the SEC. The forward-looking statements are made as of
the date of this press release and neither company undertakes to update any
forward-looking statements to conform these statements to actual results or
revised expectations.

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Magellan Health Services Inc.
Joseph M. Kean, 860-507-1923
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