HB1009 More government interference in Pinnacol

HB1009 by Rep. Joe Miklosa (D) and Sen. Mary Hodge (D)

CONCERNING THE BOARD OF DIRECTORS OF PINNACOL ASSURANCE
Status: 02/26/2010 House Second Reading Laid Over to 03/02/2010

Sets up (another) Interim Committee to study PinnacolAssurance, the quasi-public workers comp insurance program, funded by private-sector businesses.

Enlarges the Pinnacol Board of directors by adding an injured worker and the executive directorof the State Dept. of Labor and Employment.

HB1009 would:

• Inject government interference into a Board that has been highly successful, overseeing rate reductions and policyholder dividends for the last five years;
• Create conflict for certain Board members between their fiduciary responsibility to policyholders and allegiance to their own stakeholders;
• Divide the Board between members who represent all policyholders and those who represent a specific special interest;
• Allow the Legislature to dictate specific Board member requirements for some members, but not others; and
• Add non-management employees to the Board, lowering the level of expertise.

Pinnacol's track record of success, including lowering rates by 42 percent in four years while receiving high marks from customers and covered workers, shows that the Board is effectively managing the company and should not be changed.

ACTION: Before March 2, Contact your Representative and tell them how government interference in the private sector is unnecessary and inefficient. If you are a Pinnacol customer, explain how government interference tends to increase rates.