Sunday, November 20, 2011
Pinnacol again seeks privatization
The Denver Post is reporting how once again there is an effort to privatize Pinnacol Assurance, the state's quasi public/private workers comp insurer. Pinnacol is also the largest insurer in Colorado in this area. Now they are reviewing the proposal that the state gets a 40% stake worth $340 million dollars in return for greater autonomy for Pinnacol. What sticks with me is that the state saw big cash amounts held by Pinnacol and wanted a piece of that to help with the state budget. Pinnacol then sought to get away from state influence and control. This is a story that reminds me of the old serial thrillers. This version is still controversial as I suspect some may question the wisdom of the state agreeing to this. Colorado created Pinnacol to make it easier for businesses, especially high risk businesses to obtain workers compensation insurance for a fair price. I remember getting claimant benefit checks from the state accounts but that was years ago. The point is that it has thrived and been effective in Colorado with state backing and now that it is doing well wants more autonomy. Control and money issues are involved so of course with such issues comes controversy.