September 19, 2009 12:54 AM UTC

Meanwhile, Back at the Pinnacol Hearings...

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• by: Colorado Pols

SATURDAY UPDATE: Sen. Morgan Carroll responds to the Post’s editorial.

When we last talked about the hearings at the Capitol regarding the future of the state’s workman’s comp insurer of last resort Pinnacol Assurance, we were focused on off-color remarks by Sen. Shawn Mitchell to the committee chairwoman. In the background of that discussion, though, was the actual issue at hand: whether or not tax-exempt Pinnacol is treating either workers or taxpayers fairly.

To briefly recap, this past legislative session saw an attempt to appropriate excess reserves from Pinnacol to balance the state budget–the logic being that Pinnacol was a state entity and these funds were state funds. When Pinnacol resisted, all hell broke loose, with the “raid” on Pinnacol characterized as a ‘government takeover’ of a private business in full “Tea Party” hyperbole–and Democrats responding with disclosures about lavish expenses incurred by Pinnacol executives. After intervention by Governor Ritter basically halted the “raid” in its tracks, the committee currently investigating Pinnacol’s practices was set up.

Under the radar, these hearings have been very interesting–scrutinizing highly questionable perks enjoyed by Pinnacol executives, in contrast to stories of workers who had their claims denied or mishandled. It’s become a more fundamental look at Pinnacol’s special status in light of the job it’s doing. Those we’ve talked to have said the hearings were quite compelling, though both PInnacol representatives and certain Republicans involved (Mitchell, see above) were not participating in good faith. Pinnacol itself, which had come into the hearings allegedly prepared to–gasp!–pay taxes like any other entity who claims the independence they assert, reversed that position last week and now wants the status quo preserved. No reason, they just don’t want to play anymore.

And bafflingly, after everything they themselves reported about Pinnacol’s excesses in the last few months, the Denver Post is fine with that:

A committee of state lawmakers probing Pinnacol Assurance apparently just lost a chance to help plug the state’s $318 million budget deficit with possibly more than $100 million from Pinnacol. And if the quasi-public Pinnacol was ever willing to play nice and fork over some cash, the company and its policyholders have circled the wagons.

Too bad. Pinnacol’s offer was intriguing, and could have benefitted the cash-strapped state and bolstered the health of the company too.

The committee, led by state Sen. Morgan Carroll, D-Aurora, went down a much different path than we would have liked. Though formed after concerns about the size of Pinnacol’s cash reserves, Carroll, who represents workers’ compensation cases in her private practice, has decided to seek an array of other reforms…

Carroll tells us the committee is no longer seeking to set the size of Pinnacol’s reserves, or to balance the state budget using Pinnacol’s cash. Rather, Carroll wants to make Pinnacol more beholden to injured workers. But a Republican member of the committee, Sen. Shawn Mitchell, says he thinks Carroll has “hijacked” the process to advance her agenda, and that the reality is that workers’ compensation in Colorado is functioning equitably and fairly.

This is an absolute pile of steaming crap, folks, qualitatively uncharacteristic of the Post’s editorial board as we’ve seen a couple times before–another Dean Singleton editorial “intervention,” perhaps? Pinnacol never went into these hearings in good faith, just like they were never really interested in a solution during the legislative session. They willingly turned this into a ridiculous ideological circus to evade growing questions about their practices. The committee investigating Pinnacol had every authority to look at all aspects of Pinnacol’s “business,” and the real problem here is that Pinnacol and their legislative allies didn’t like the narrative that was shaping up.

Possibly the worst aspect of this editorial is its elevation of Shawn Mitchell to a position of legitimacy in the context of these hearings. We’ve already played audio for you of one instance of Mitchell making a (tasteless) joke of his duties. Here’s another we were forwarded today–this time, listen to Mitchell blow off an injured worker whose claim was denied by Pinnacol:

So tort-reform Mitchell says, ‘Why didn’t you sue? You should have sued! You should have sued and now it’s too late. And what do you mean, you don’t have $200 to see a doctor?! Don’t go to the emergency room though, that’ll cost somebody real money!‘

That’s what he calls “workers’ compensation functioning equitably and fairly?”

In addition to making a poignantly unintentional argument for health care reform, it’s very difficult to listen to this interjection from Mitchell–certainly not his previous one–and not find him to be an utterly classless buffoon. You’ll recall it was the Grand Junction Sentinel who actually published the story about Mitchell’s pervy remarks to Sen. Carroll, the Denver Post didn’t care to–apparently they were saving his reputation for something.

And now we know what for! It was so he could attack these hearings, and Sen. Carroll’s motives broadly, without the reader ever knowing what a disingenuous slimeball they’re reading about. We’re sorry to put it in such blunt terms, that’s not really our style–the Post committed an especially disgusting foul with this one, and neither they nor Mitchell should be allowed to get away with it.