Lawmakers OK Pinnacol Crackdown!


Pinnacol Bills to change company's practices will be considered in 2010 session.

By Joe Hanel
Durango Herald
October 18, 2009

DENVER - Legislators wrapped up an acrimonious investigation into Colorado's Workers' Compensation company Friday, voting to pursue seven bills to change the company's practices.

The votes to crack down on Pinnacol Assurance fell on party lines, with six Democrats voting yes and all Republicans voting no.

The bills will be considered in January when the Legislature starts its 2010 session.

Pinnacol falls into a legal gray area. It's chartered by state law, but it is neither a government agency nor a fully private firm.

Last spring, Democrats targeted the company's $600 million surplus to help close the budget gap, but a massive lobbying effort by Pinnacol helped thwart that plan. Democratic leaders instead settled for this summer's study committee, which did not attempt to divert the surplus into the state budget.

The panel included legislators and nonlegislators, including Pinnacol CEO Ken Ross.

Committee chairwoman Sen. Morgan Carroll, D-Aurora, invited injured workers to share their experiences with Pinnacol, and many stepped forward with complaints.

Last month, a Durango firefighter testified that Pinnacol agents spied on him and videotaped him to try to prove he was lying about his back injury.

Several other injured workers complained about spying, prompting Rep. Sal Pace, D-Pueblo, to limit the use of surveillance.

Ross said surveillance is necessary to fight insurance fraud.

Pace's bill would increase costs, "and those costs will definitely be passed on to our business owners," Ross said.

Another bill would require Pinnacol to survey injured workers about their satisfaction with the company. Republicans, led by Sen. Shawn Mitchell of Broomfield, opposed it.

"What is happening here today with this bill, and with the others that follow, is a travesty," Mitchell said.

Mitchell got into a shouting match with Carroll, the chairwoman, during debate about the surveillance bill, daring her to have sergeants-at-arms eject him from the meeting.

"Behave yourself like an adult!" Carroll said, banging her gavel. "Good God!"

Mitchell left the meeting early and did not vote on several of the bills.

Other bills would:

  • Force Pinnacol to refund money to policyholders if its surplus reaches a certain level.
  • Increase the fines for improperly denying Workers' Compensation claims.
  • Require doctors to disclose conflicts of interest to injured workers they examine.
None of the bills will take effect unless the Legislature passes them next year.

 


Copyright © 2009 National Organization of Injured Workers, Inc. - a non-profit public benefit corporation.
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