Gov. Hickenlooper Names Task Force to Review Pinnacol Proposal

Press Release

Gov. John Hickenlooper today named a task force to review a restructuring proposal from Pinnacol Assurance. The proposal came in response to the governor asking Pinnacol earlier this year to examine its operations and explore options for the future.

"We are pleased to see Pinnacol has delivered a long-term plan that appears to create ownership certainty for both policyholders and the public interest," Hickenlooper said. "One of our chief concerns is making sure injured workers are protected. It's also important that policy holders and the state of Colorado benefit from any changes. We look forward to carefully reviewing the restructuring plan in the coming weeks and talking to the many stakeholders who would be affected by any change."

A stakeholder's Task Force of 19 people (listed below) representing some of the key groups and interests that would be affected by the Pinnacol restructuring will review the proposal. Task Force members will meet over the next few months and consider the following questions:

* How does the proposal affect Pinnacol's "immediate" stakeholders -- i.e. injured workers, policyholders, employees and others?
* What is Pinnacol's business plan going forward and what commitments to further serve Colorado are included in that plan? What form should these commitments take to be enforceable?
* What is Pinnacol offering to compensate the public for the prior support provided by the State and is that offer appropriate?
* How should this public value be secured and to what purposes should it be devoted? The model for providing such compensation in the form of a public-purpose fund follows the precedent established by the state of Colorado in 1998 when the Blue Cross Blue Shield system was sold to Anthem, and a portion of the proceeds were used to fund the Caring for Colorado Foundation.

The Task Force will report to Hickenlooper at the end of its review and provide guidance on potential legislation.

"We want what's best for injured workers, policyholders, the business community and the people of Colorado," Hickenlooper said. "Done the right way, this proposal has the potential to benefit Colorado for generations to come."

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