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Maxon's Data Center

The company 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.