Colorado – Pinnacol Is Willing To Pay
Recently, I posted an article on Colorado’s Workers Comp carrier Pinnacol offering a staggering figure ($200 million) for autonomy. I had thought that Colorado would take the $ as the Colorado Legislature’s raiding of the company’s surplus to the tune of $500 million was considered illegal. After all, Pinnacol would immediately have to start paying taxes if they were given their independence from the state.
Pinncaol may actually take a lead from West Virginia’s Brickstreet and expand into other states very quickly. Cherry picking the good accounts that are just in Colorado would not enable Pinnacol to stay in business very long. One has to wonder why Oklahoma’s CompSource did not attempt to make such an offer to the Oklahoma Legislature.
The story does not end here. Pinnacol has just offered the State of Colorado $330 million for autonomy. Pinnacol might have taken negotiation lessons from their adjusters. Why make an increased offer of 65% over the initial offer? This is a case of very poor negotiation.
I am wondering what caused the enormous increase. There was a recent valuation of Pinnacol which set the company worth at $370 million. The next offer by Pinncaol should follow an offer from the Legislature. As any Workers Compensation adjuster will tell you, do not make another offer without receiving a monetary response from the other party.
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