Colorado Politics’ Marianne Goodland reports that a plan to privatize Pinnacol Assurance, Colorado’s quasi-governmental workers’ comp insurer, drew a chilly first review from the Joint Budget Committee. The Polis administration is floating a deal for the 2026 session: Pinnacol would pay the state about 400 million dollars from its assets and buy out its share of PERA, with the proceeds helping fill looming budget holes.
According to the piece, the 400 million dollars would fund the senior and disabled-veteran homestead exemption, plus controlled maintenance and a general fund boost. Lawmakers raised timing and stakeholder concerns, while Insurance Commissioner Michael Conway noted other states have made similar moves. One Democrat, Sen. Judy Amabile, said the concept makes sense, even if the timing slips.
The Bullet Point Brief
- What privatization does. Frees Pinnacol to write coverage for Colorado companies with out-of-state employees, ending the in-state handcuffs. Competition over complacency.
- The price tag. State wants about 400 million dollars; PERA buyout estimate sits around 302 million dollars, a likely sticking point. Math beats slogans.
- Where the money goes. Roughly 194 million to the homestead exemption in 2026, 100 million to controlled maintenance, 100 million to the general fund. Patches for a leaky budget.
- Lawmakers’ vibe. From skeptical to open-with-questions on timing, premiums, and stakeholder outreach. Translation: hurry up and wait.
- Context check. Market share slipped about 3 percent; other states like Utah and Oklahoma already privatized similar insurers. We are late to obvious.
My Bottom Line
Because the government does everything so much better, right? The Colorado Legislature should be focused on increasing efficiency, decreasing in size, and cutting expenses. If privatization accomplishes that, then do it. Pinnacol’s model has been halfway-private for years. Let it fully compete and stop using it as a piggy bank and a political football.
Democrats love to grow boxes on org charts, then wonder why premiums and timelines grow too. The free market disciplines bloat. Government nurtures it. If the state can grab 400 million dollars up front, fund the homestead exemption, and end the in-state-only shackles so employers get more options and sharper pricing, that is a win–win. Just do the PERA math in daylight and keep the insurer-of-last-resort function intact.
Coloradans are not asking for new bureaucracies. They are asking for insurance that is affordable, responsive, and modern. Shrink the footprint of government, let Pinnacol compete across borders, and return the Legislature to the job it avoids most: getting out of the way.
Source: Colorado Politics
