Colorado’s Pinnacol Pays $200,000,000
Did Colorado’s Pinnacol just buy its independence? I usually am able to comprehend most things that happen in the World of Workers Comp. When I read the headlines that Pinnacol is willing to pay $200 million to have more autonomy, I was flabbergasted, to say the least.
It looks to me as if Pinnacol is willing to buy votes by saying that they will pay $200 million to be left alone. The recent bills that are in place which would change Pinnacol are:
1. The denials that Pinnacol has issued to injured employees
2. The surveillance that Pinnacol has ordered on some of the injured employees
3. The status of how Pinnacol operates – is it going to be a private insurer or still a quasi-governmental unit.
4. Will the Colorado state government be able to raid the capital surplus of Pinnacol and place it in the general fund?
5. Can Pinnacol purchase other insurance carriers while still having the quasi-governmental status?
There are many other concerns with Pinnacol. As with CompSource in Oklahoma, the best method to privatize a company is to just do it. The example of Brickstreet in WV and others such as Nevada all show that the conversion can be accomplished successfully.
The problems that Ohio and Washington have had of late show the need for a full privatization effort. The open market for Workers Compensation is always the best for the state in question.
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