Maxon's Data Center
began in 1955 as a Third Party Administrator for collectively bargained
Taft Hartley multiemployer Health Plans. When founded, Maxon administered
basic medical plans incorporating limited benefit schedules. All administration
was done by hand. Despite the labor intensive nature of the task, record
keeping included most data points which are currently accepted to be
required for plan analysis. Maxon’s first data processing department
started in 1967 using leased time on General Electric’s room
sized mainframes in Bethesda, Maryland. Raw data was transmitted via
paper tape with batch output printed the next day. As Plan designs
evolved, so did the sophistication of Maxon’s systems and procedures.
Maxon began employing medical personnel to assist in the review of
benefit requests, and acquired its own computer technology. In both
cases Maxon was, if not the first, then among the first administrators
to do so.