Colorado lawmakers are working on a bill that would spin off the state-chartered workers' compensation carrier in exchange for a $300 million payment, according to a report by the Denver Gazette.

Speaker Julie McCluskie

Pinnacol's payment to the state would be divided among several programs, including increasing Medicaid provider reimbursement rates and funding education programs.

For three years, Pinnacol would continue to serve as the insurer of last resort, providing workers' compensation coverage to businesses that can't obtain policies on the open market. After that, the Division of Insurance would contract with a carrier to serve the residual market.

WorkCompCentral was not able to obtain a draft of the bill that the Gazette said was authored by House Speaker Julie McCluskie.

An initiative recently approved for the November ballot would ask Colorado voters whether to separate Pinnacol from the state, effective July 1, 2027, in exchange for a one-time payment of $150 million to create a Skilled Workers and Trades Fund.

The Colorado Title Board in March authorized supporters to begin collecting signatures to qualify Initiative No. 249 for the November ballot.