Pinnacol privatization effort fails

A push to privatize Colorado’s workers compensation insurer, Pinnacol Assurance, failed Monday when only one member of the committee reviewing the legislation voted for the conversion.

H.B. 1213, which was introduced in early March, died in the House committee on state, civic, military and veterans affairs in a 10-1 vote to postpone the bill indefinitely.

The legislation proposed converting Pinnacol from a political subdivision of the state to a stock insurance company owned by a mutual insurance holding company, with the state receiving a one-time payout of $305 million for the divestiture of its interest. The bill would also have removed Pinnacol workers from the state’s pension system.