Comments on: Funding Education in Colorado is a Moral Imperative http://www.brandonshaffer.net/2009/04/08/funding-education-in-colorado-is-a-moral-imperative/ "It is time for a new generation of leadership to cope with new problems and new oppportunities. For there is a new world to be won" - John F. Kennedy Thu, 19 Aug 2010 14:51:39 +0000 hourly 1 http://wordpress.org/?v=3.0 By: SenatorShaffer http://www.brandonshaffer.net/2009/04/08/funding-education-in-colorado-is-a-moral-imperative/comment-page-1/#comment-30 SenatorShaffer Tue, 14 Apr 2009 18:50:40 +0000 http://www.brandonshaffer.net/?p=582#comment-30 Pinnacol has a reserve that is far more than what it needs to cover claims now and in the future. There are three ways Pinnacol could grow a whopping $700 million surplus. 1. Paying no taxes (If Pinnacol did pay taxes, the state would collect about $40 million a year). 2. Charging businesses exorbitant premiums. 3. Denying legitimate claims. I carried Senate Bill 281 because none of the above are acceptable. My bill calls for an audit of Pinnacol and an interim committee to investigate why this surplus has grown so excessively. It also requires Pinnacol to give a dividend to all of its small-business policyholders. Companies with fewer than 50 employees will get part of this money returned to them for economic stimulus. I think it’s appropriate to issue this call to action to Pinnacol—a state entity sitting on a massive surplus worth $700 million. Pinnacol will remain stable and will be able to maintain or even lower policyholders’ premiums. The decision to use these funds—think of them as back taxes—was extremely difficult, but when we must choose between allowing a state entity to retain a $700 million surplus or closing colleges in Colorado, the choice is clear. We absolutely must preserve post-secondary education. Pinnacol has a reserve that is far more than what it needs to cover claims now and in the future. There are three ways Pinnacol could grow a whopping $700 million surplus.

1. Paying no taxes (If Pinnacol did pay taxes, the state would collect about $40 million a year).
2. Charging businesses exorbitant premiums.
3. Denying legitimate claims.

I carried Senate Bill 281 because none of the above are acceptable. My bill calls for an audit of Pinnacol and an interim committee to investigate why this surplus has grown so excessively. It also requires Pinnacol to give a dividend to all of its small-business policyholders. Companies with fewer than 50 employees will get part of this money returned to them for economic stimulus.

I think it’s appropriate to issue this call to action to Pinnacol—a state entity sitting on a massive surplus worth $700 million. Pinnacol will remain stable and will be able to maintain or even lower policyholders’ premiums.

The decision to use these funds—think of them as back taxes—was extremely difficult, but when we must choose between allowing a state entity to retain a $700 million surplus or closing colleges in Colorado, the choice is clear. We absolutely must preserve post-secondary education.

]]> By: MDonner http://www.brandonshaffer.net/2009/04/08/funding-education-in-colorado-is-a-moral-imperative/comment-page-1/#comment-27 MDonner Wed, 08 Apr 2009 22:59:13 +0000 http://www.brandonshaffer.net/?p=582#comment-27 I am a business owner that operates throughout the Boulder and Denver Metro areas. While I agree that higher education is important, it is not so important as to allow the state to steal from its business owners. Let me explain. My business pays over $110,000 per year in premiums to Pinnacol. Our loss ratio is about .65, meaning for every premium dollar we pay, there are about $0.65 (65%) in claims paid. Generally speaking anything under .90 is considered pretty good in my industry. If Pinnacol has excess reserves it is because of companies like mine that pay a lot more premium than is used for claims. The excess reserves were funded by my business and many like mine. If the state says the reserves are too high, then please send us our dividend (return of excess premium). Even though it sounds good and moral to use it for something else, it should be returned to its rightfull owner, and that is certainly not the state's general fund. I am a business owner that operates throughout the Boulder and Denver Metro areas. While I agree that higher education is important, it is not so important as to allow the state to steal from its business owners.

Let me explain. My business pays over $110,000 per year in premiums to Pinnacol. Our loss ratio is about .65, meaning for every premium dollar we pay, there are about $0.65 (65%) in claims paid. Generally speaking anything under .90 is considered pretty good in my industry.

If Pinnacol has excess reserves it is because of companies like mine that pay a lot more premium than is used for claims. The excess reserves were funded by my business and many like mine. If the state says the reserves are too high, then please send us our dividend (return of excess premium).

Even though it sounds good and moral to use it for something else, it should be returned to its rightfull owner, and that is certainly not the state’s general fund.

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