|
Dan Pilcher
CACI Senior Vice President
& Chief Operating Officer
Phone: 303.866.9600
E-Mail:
dpilcher@cochamber.com
Friday, September 18, 2009
Pinnacol Holds Firm While Interim Legislative Committee Debates
Changes to Pinnacol and Workers’ Comp Laws
On Wednesday, Pinnacol Assurance issued a press release stating
that it prefers maintaining its current structure and will not
suggest any changes to an interim legislative committee that has
been studying Pinnacol since August.
This morning, the Legislative Interim Committee on Pinnacol
Assurance, which is chaired by Senator Morgan Carroll
(D-Aurora), debated findings and recommendations concerning
Pinnacol and state workers compensation laws and how they might
be changed.
CACI Vice President of Governmental Affairs Loren Furman
attended the meeting this morning and reports that most of the
proposals offer significant changes to current workers’
compensation statutes. Proposals that affect Pinnacol include
increasing transparency of Pinnacol’s operations, increasing
penalties for wrongful delay or denial of claims and giving
injured workers seats on the Pinnacol Board of Directors.
The fifth and final meeting of the Committee is October 16th (9
a.m.—5 p.m., in House Committee Room 112 at the State Capitol).
During this meeting, the Committee can vote on up to eight
proposals to be drafted and filed for introduction as bills
during the 2010 legislative session.
Here is the list of bill requests made by Committee members (for
the Committee membership, click below on the link that provides
more information about the Committee):
Interim Committee to Study Issues Related to Pinnacol Assurance
Interim Committee Bill Requests
1)
Accountability and Transparency Act (Hodge)
§
Create a complaint department in the Division of Workers'
Compensation within the Department of Labor and Employment.
§
Conduct surveys on injured workers.
§
Require Pinnacol Assurance to report annually to the Senate and
House Business and Health committees.
2)
Pinnacol Board Transparency Act (Miklosi)
§
Structure the Pinnacol Board so that 2 employee members are
non-management employees. Add 2 additional members: an injured
worker and a representative of CDLE.
§
Post board meetings on the Pinnacol website at least 7 days in
advance of meetings and allow for public comment at the
meetings.
§
Increase compensation to the board members beyond the existing
per diem to $1,000 per month.
3)
Penalties for Wrongful Denials of Claims (Tochtrop)
§
Create a penalty of $1,000/day for fraudulent violations of the
workers' comp act where an injured worker's claim has been
fraudulently delayed or denied.
4)
Injured Workers Privacy Act (Pace)
§
Require an insurer to have a good faith belief that an injured
worker's claim is fraudulent before taking any surveillance
video.
§
Require the insurer to send the video to the worker when no
fraud is found.
§
Allow expedited hearing before ALJ's in situations where injured
the injured worker believes these provisions are violated.
5)
Create Workers' Advocate Office (Pace)
§
Create a workers' advocate office to assist injured workers (Possibly
similar to Nevada).
6)
Ratepayer Relief/Policyholder Protection (Ryden)
§
Lower rates by requiring the insurance commissioner to choose
the lower of the two rate percentages presented by NCCI and the
independent actuary.
§
Require prior approval of the loss cost multipliers or the
supplemental rate deviations.
7)
Agreements with Drug Manufacturers that Affect Rates (Tochtrop)
§
Address pharmacists concerns regarding pharmacy benefit managers
8)
Injured Worker Bill of Rights and Disclosure (Miklosi)
§
Require insurers to notify an injured worker of his or her
rights once a claim is filed. Include the process and options
available to the worker.
9)
Prohibit Incentives for Denying Claims (Carroll)
§
Prohibit any financial incentives for employees of workers'
compensation insurers or authorized medical providers to deny or
delay a claim..
10)
Disclosure of Conflicts of Interest by Doctors (Carroll)
§
Require the three doctors on the DIME panel to disclose
financial interests in the insurer to the injured worker prior
to choosing the examiner.
11)
Make CEO of Pinnacol an Ex Officio Member of the Board (Gardner)
12)
Require Pinnacol to Charge Less, Pay More, and Don't Ask Hard
Questions of Injured Workers (Mitchell)
13)
Create a Trigger that these Interim Committee Bills will Not
Take Effect Unless they're Job Friendly (Mitchell)
-
Require certifications by divisions of workers' comp and
insurance that any proposed changes would not create upward
pressure on workers' compensation rates, and a certification
by the office of economic development that any proposed
changes would not create comparative disadvantages for
Colorado companies or have downward pressure on employment.
14)
Disclosure of Conflicts of Interests when Legislators Vote on
Workers' Comp Bills (Mitchell)
15)
Reinstitute Vocational Rehabilitation Benefit (Ryden)
16)
Organization, Structure, and Operation of Pinnacol's Board
(Gardner)
17)
Make Pinnacol an Independent, Private Mutual Assurance Company
(Mitchell)
18)
Penalties and Guidelines for Employers who Classify Employees as
Independent Contractors and thereby Avoid Paying Workers'
Comp/Enforcement by AG's Office (Mitchell)
19)
Process for Hiring Pinnacol's CEO and President (Pace)
SB-281 created the interim Pinnacol Committee and charged it to
study “the operation of Pinnacol Assurance including, but not
limited to both the feasibility of the continued operation and
the public policy implications of Pinnacol Assurance as a
division of state government or the feasibility and public
policy implications of selling Pinnacol Assurance to a willing
third-party buyer.”
On August 14th, two CACI members testified before the
Pinnacol Committee in opposition to changes to Pinnacol. Joan
Zivic, Human Resources Directors at AAA Colorado, Denver, made
the following remarks:
Pinnacol has been AAA Colorado’s workers compensation carrier
since 2003. As the HR Director, I am the primary contact for
injured workers and Pinnacol. Pinnacol has been working very
well for both the company and our injured workers. I attribute
this success to both good claims management and preventive
measures such as ergonomic assessments of our office
environment. Pinnacol has earned their position in the
insurance market by providing good service, pricing and
coverage.
Jack L. Davis, CEO of Advanced Surface Technologies, Arvada,
told the Committee that:
-
Our workers’ comp rate has decreased 33 percent since 2005.
No other cost factor has come close to that.
-
The question of whether I would prefer to have the “excess
funds” now rather than later in terms of dividends would be
“no” if it meant volatile rates. Having stable or downward
trending rates is much easier to deal with when considering
the impact on pricing our services
-
As a company that is in an industry concerned about “an
insurer of last resort,” it is important that Pinnacol
continue that role
-
Pinnacol has done a commendable job administering our
workers comp program. As many testifying said: “If it ain’t
broke, don’t try to fix it.”
For more on the Pinnacol Committee, click on:
http://www.colorado.gov/cs/Satellite?c=Page&cid=1242822336368&pagename=CGA-LegislativeCouncil%2FCLCLayout
CACI members who want more information about the Pinnacol
Committee’s work should contact Loren Furman, CACI Vice
President of Governmental Affairs, at 303.866.9642 or via e-mail
at
lfurman@COchamber.com
Here is the news release issued Wednesday by Pinnacol:
Contact: Suzi
Stolte
Associate Vice President, Communications and Public Relations
303.361.4777 (office)
303.406.3795 (mobile)
suzi.stolte@pinnacol.com
PINNACOL SAYS NO CHANGES NEEDED TO ITS STRUCTURE
Insurer will not offer proposals to Interim Legislative
Committee
DENVER, September 16, 2009 – Pinnacol Assurance does not believe
any retooling of state laws regarding the workers’ compensation
carrier is necessary, and it will not bring any new legislation
to the Interim Legislative Committee that is studying Pinnacol’s
operations.
“We believe strongly that Pinnacol is not broken, so we’re
saying don’t fix it,’” said Pinnacol President and CEO Ken
Ross. “We continue to assert that it is our responsibility to
safeguard Colorado companies, their employees, and Pinnacol’s
assets, which belong to our policyholders. There’s no need for
any tinkering with the laws regarding Pinnacol’s assets, or its
legal stature.”
Members of the General Assembly earlier this year attempted to
raid Pinnacol’s surplus to make up for the state’s large budget
deficit, but were turned away when the Attorney General ruled
that Pinnacol’s money does not belong to the state.
Ross said he meets with business community leaders today and
heard strong support for leaving Pinnacol in its current status,
as the market leader and the “insurer of last resort,” providing
workers’ compensation insurance to the hard-to-insure “residual
market.” Ross said the business community continues to be
alarmed by the idea that Pinnacol’s assets are at risk, and that
Pinnacol can be sold to the highest bidder, a suggestion made at
the last committee hearing.
Members of the business community rallied last spring to stop
the raid of Pinnacol’s surplus and they’ve been supportive of
Pinnacol during the hearings, which some have portrayed as a
“witch hunt, and a waste of time and taxpayer dollars.” Ross
said he again reassured businesses that Pinnacol’s assets are
held in trust for policyholders, and cannot be taken by the
state.
Ross said Pinnacol’s financial success benefits Colorado
businesses, allowing the workers’ compensation market to remain
viable and stable—characteristics that create a competitive
business environment. Colorado has the seventh lowest workers’
compensation premiums in the nation. Pinnacol has reduced its
rates 42% in the past four years.
The Interim Committee is not required to suggest legislative
changes, Ross pointed out, but the chair Sen. Morgan Carroll
(D-Aurora) has indicated she wants tighter restrictions imposed
on Pinnacol. Of the 16-member committee, only the 10
legislators (six Democrats, four Republicans) are allowed to
vote on proposed legislation for recommendation to both houses
of the General Assembly.
“It’s been clear that our business model puts a top priority on
stable rates, injured worker care, workplace safety and
operational efficiencies. Pinnacol’s success and business model
were validated multiple times in testimony heard by the interim
committee during the first four meetings,” added Ross.
About Pinnacol Assurance
Pinnacol Assurance is Colorado’s leading provider of workers’
compensation insurance. Pinnacol provides comprehensive,
competitively priced coverage; immediate attention to claims; a
highly qualified network of medical providers; and proactive
safety programs to approximately 58,000 Colorado businesses.
Over the past five years, Pinnacol has returned $347 million in
general dividends to its policyholders statewide―a mark of the
company’s stable and strong financial health.
For recent coverage of the Pinnacol Committee by The Denver
Post, click on the following:
http://www.denverpost.com/legislature/ci_13362377
http://www.denverpost.com/opinion/ci_13361554
http://www.denverpost.com/legislature/ci_13354552
http://www.denverpost.com/legislature/ci_13274132
http://www.denverpost.com/legislature/ci_13242376
Legislators Visit CACI Members to Learn About Business Concerns
Yesterday, three legislators joined CACI in a visit to the
Anheuser-Busch plant at Fort Collins. The purpose of the tour
was to educate the legislators about the plant and how
legislative proposals can affect its operations. The three were
Senate President Brandon Shaffer (D-Longmont), Representative
Kevin Lundberg (R-Berthoud) and Representative Brian DelGrosso
(R-Loveland) and his wife, Amber.
CACI President Chuck Berry and CACI Vice President of
Governmental Affairs Loren Furman participated in the visit.
CACI members Shayne Madsen and Sally Kline attended also. The
CACI delegation was joined by Ted Powers, Director of Region
Eight Government Affairs for Anheuser-Busch and who is based in
St. Louis, Missouri.
This visit was the most recent in a series of visits by
legislators to CACI members in their districts, arranged by CACI.
Here are three more that have taken place recently:
-
Quest Diagnostics, Denver, which was visited by
Representative Mark Ferrandino (D-Denver), Representative
Joel Judd (D-Denver) and Cody Belzley, Senior Policy Analyst
for Health-Care, Office of Governor Bill Ritter on August 27th.
Planned visits include Micro-Motion, Boulder, Oct. 12th,
Ice-O-Matic, Denver, Oct. 13th and Roche Colorado
Corp sometime in October.
CACI Board Chair Peter O’Connor Announces Appointment of Two New
Council Chairs
At a meeting on August 31st of CACI’s Executive
Committee, CACI Board Chair Peter O’Connor, Chief Administrative
Officer and General Counsel, AngloGold Ashanti North America,
Inc., announced his appointment of two new Council Chairs:
John R. Jacus, a Partner with Davids Graham and Stubbs LLP s,
will chair the Energy and Environment Council. For more
information on John, click on:
http://www.dgslaw.com/attorneys/Pages/Attorneys.aspx?ID=189
Sybil Kisken, Of Counsel with Davids Graham and Stubbs LLP, will
chair the Labor and Employment Council. Chuck Berry, CACI
President, had served as the temporary chair since the Council
was created early last year. For more information on Sybil,
click on:
http://www.dgslaw.com/attorneys/Pages/Attorneys.aspx?ID=148
Legislative Leaders to Address CACI Board of Directors at Annual
Fall Retreat Next Week in Vail
The CACI Board of Directors will hold its Annual Fall Retreat
next Thursday-Friday, September 24-25. Senate President Brandon
Shaffer (D-Longmont) and House Minority Leader Mike May
(R-Parker) will discuss issues facing the statewide business
community and possible legislation for the 2010 session of the
Colorado General Assembly. The Board’s Retreat also will
feature a Directors’ Roundtable on issues facing various
industries in Colorado.
|
