Press Room

Pinnacol Cmte passes common sense bills to improve worker's comp system

Friday, October 16 2009

DENVER—    Today, the Pinnacol Interim Committee voted to approve bills which bring common sense solutions to some serious problems uncovered by the committee.   The bills will protect businesses, lower their rates, better enforce current law, and end the practice of offering bonuses to deny claims.

Senator Morgan Carroll (D-Aurora) is the chair of the Pinnacol Interim Committee.  “I’m really proud of this committee’s work.  We had some long days and some heated discussions, but I truly believe that we came up with some good ideas which will help Colorado’s workers, improve Colorado’s businesses, and make sure our workers compensation insurer of last resort is stable, successful and solvent.”

Senator Lois Tochtrop (D-Thornton): “The testimony we heard during the committee proves that the system just isn’t working, but these bills will bring an end to that.  Businesses are paying too much in premiums and it’s not working for injured workers.  The workers are not getting what they are entitled to, but these bills will bring fairness back into the system.”

The bills will:

• Protect Businesses:  Representative Su Ryden (D-Aurora) is offering a bill called the “Workers’ Compensation Policyholder Protection Act of 2010” or the “Rate Reduction Act”.  This bill will lower rates for small businesses by directing the insurance commissioner to use the lower of the two rates when comparing recommendations of NCCI (National Council on Compensation Insurance) and an independent actuary, unless there is good cause not to.  The bill will also trigger a surplus dividend to policyholders. 

• Improve Pinnacol’s Board and Creating a Workers’ Bill of Rights: Representative Joe Miklosi’s (D-Denver) Pinnacol Board Improvement bill will make sure Pinnacol’s Board of Directors’ membership reflects the perspectives of both shareholders and injured workers.  The legislation will place a previously injured worker and a designee from the Colorado Department of Labor to the board.  Additionally, the legislation will require that all board meetings be publicly posted seven days in advance and allow a reasonable amount of time for public comments.   Rep. Miklosi is also sponsoring the “Injured Workers’ Bill of Rights” legislation to ensure that all workers are notified about their rights under Colorado law.  These rights will be sent to injured workers covered under Pinnacol. 

• Bring Transparency and Accountability:  Senator Mary Hodge’s (D-Brighton) bill will help the transparency and accountability of the state’s workers’ compensation fund by requiring an annual report, ensuring that the workers comp complaint system is put online, and making sure that all injured workers complete an exit satisfaction survey, which was a proposal from Pinnacol’s representative Dan O’Neil.   

• End the Practice of Offering Bonuses to Deny Claims: Senator Morgan Carroll wants to put an end to paying bonuses to deny claims or medical care by prohibiting this practice and increasing the penalties for the wrongful delay or denial of claims or medical care.  This bill will also require the disclosure of any conflicts of interest which may get in the way of providing care, and will also make sure that following the unfortunate death of an injured worker the benefits will be given back to the family, not Pinnacol.

• Enforce Current Law:  Senator Lois Tochtrop wants to make sure the current system is working better and that current laws already on the books are being enforced.  The penalties for violating the workers’ comp act will be increased for the first time in more than 30 years from $500 a day to $1000 a day.  It also changes the mental state of that violation from “willingly” to “knowingly”.

• Protect workers from spying:  With so few cases leading to a fraud conviction, Representative Sal Pace (D-Pueblo) wants to make sure injured, suffering workers aren’t treated like criminals.  With his bill, surveillance would only be allowed with reasonable cause, and workers would have the right to an expedited hearing, if they would like to challenge accusations of fraud.

Click here for complete story on problems uncovered by the committee.

The bills will now head to the Executive Committee for approval on November 10 along with the rest of the bills which came out of Interim Committees this year.

The purpose of this interim committee is to ensure Colorado policyholders are paying the lowest premiums possible, that injured workers are getting the medical care and benefits they need to get back to work, and that Colorado's “workers compensation insurer of last resort” is stable, successful and solvent.