3/3/2021 - Pinnacol / Worker's Compensation News

 

Important Legislative Update     Potential Pinnacol privatization The bill to separate Pinnacol from the state will be introduced today and faces certain death in its current form. House leadership would not allow any Democrats to sign on as co-prime sponsors and stated Monday their opposition to the bill this year. Their reasoning was primarily that the state no longer faces a fiscal crisis, so it does not need to divest its interest in the company. They also indicated concern about the state being left without a carrier of last resort (which reflects a misunderstanding of our proposal to remain COLR on contract to the state). Although the existing bill will not go forward, there are preliminary discussions with organized labor about whether a compromise could be reached that would give Pinnacol flexibility while maintaining some tie to the state. Any such agreement would require significant discussions with all stakeholders and would necessitate a new bill. We will keep you apprised if these conversations move forward. Other workers’ comp legislation •    A bill was developed by the Workers’ Compensation Educational Association and was agreed to by Pinnacol Assurance and the Colorado Self-Insurers Association in 2019. The bill combines procedural changes designed to ease friction in the system and some minor benefit changes that are not expected to significantly affect costs for businesses. (The attached fact sheet provides more detail.) Pinnacol and CSIA are neutral on the bill. At this writing, it has passed out of its first committee and is likely to move forward quickly. •    A bill was introduced yesterday to make it harder for workers’ comp insurers to collect overpayments from injured workers who received greater indemnity benefits than those to which the statute entitles them. Pinnacol has always opposed proposals that would enable people to retain benefits to which they are not entitled. However, the political winds are favorable to the bill. We are proposing alternate language to the bill sponsor that would mitigate the damage. At the present time, we are not aware of any other pending workers’ comp legislation for this session. There are still rumors of a bill to provide presumptive workers’ comp coverage for essential workers who contract COVID-19, but we have not confirmed any such bill will be introduced. If that or any other legislation affecting the industry comes forward, we will make sure you have all the pertinent information.

Copyright © 2021 Pinnacol Assurance, All rights reserved. You are receiving this email because you are a valued Pinnacol Assurance agent. Our mailing address is: Pinnacol Assurance 7501 E Lowry Blvd Denver, CO 80230-7006