Creating what company officials say will be the nation?s fourth largest privately held self-funded health benefit services provider, Baltimore-based PERFORMAX and Corporate Benefit Services of America have merged.
Financial details of the merger were not disclosed.
Jacob Canova, president and chief executive of PERFORMAX, which is a designer and manager of employee benefit plans, will serve as president and officer of the combined company, while Ralph Wolf, head of CBSA, a third-party claims administrator, will return to his consulting business, Wolf/Petravicius Associates Ltd.
“What?s happened over time is that in the mid-market [employer] area is they?ve continued to experience escalating costs in health care and we found that they are demanding more sophisticated kinds of services while also demanding very competitive prices,” Canova said. “It made sense for us to go out and find what we thought would be a good [third-party administrator] to partner with.”
The combined organization, which will be known as CBSA PERFORMAX, will boast more than 500 employees, 21 offices in markets around the country, 800 clients in 46 states and nearly 500,000 customers in 50 states. The company?s headquarters will remain in Baltimore.
Dr. Larry Luter, executive vice president and chief medical officer of Guided2Health, a division of CBSA, said that the merger will offer a more integrated array of services to mid-market companies.
“Midsize employers have the same needs as large corporations for cost-effective long-term solutions to their health benefit requirements,” Luter said. “In combination with PERFORMAX, we are creating an industry leading national platform, enabling us to provide integrated, responsive services that keep our clients on track to meet their business and human resources objectives.”
