Report: Pinnacol Privatization On Table for 2021
Friday, February 26, 2021 | 0
The Colorado Springs Gazette reports lawmakers are planning to make a run at privatizing state-chartered Pinnacol Assurance during the 2021 session.
Rep. Matt Soper, R-Delta, reportedly plans to introduce a bill that would free Pinnacol from state control as part of an effort to raise $305 million for a program to help energy industry workers transition to new careers.
The last serious push to privatize the state-chartered insurer of last resort was in 2012, when former Gov. John Hickenlooper created a task force to analyze the conversion. The group ultimately voted against proceeding.
Soper’s bill will reportedly require Pinnacol to remove its 650 workers from the state pension plan, which would cost the carrier about $234 million. Soper said Pinnacol could tap into its $1 billion reserve to pay the pension obligations.
Pinnacol could also lose its status as insurer of last resort under Soper’s plan. His bill would require the insurance commissioner to solicit bids from carriers that want to write coverage for employers that can’t otherwise secure comp insurance, starting in 2025.
Edie Sonn, vice president of communications and public affairs for Pinnacol, said the carrier would be interested in submitting a bid.