Pinnacol withdraws as workers comp administrator

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The embattled state-owned workers’ compensation insurer of last-resort has withdrawn as the administrator of state employees’ claims, forcing Colorado to hire an independent contractor.

One year remained on Pinnacol’s contract as an administrator of state employees’ workers’ compensation claims when it terminated its services and forced Colorado to put the services out to bid.

State risk manager Markie Davis says Pinnacol informed the state in January of its intent to discontinue offering administrative services. Pinnacol vice president Daniel O’Neil said the state regulations were too cumbersome.

Pinnacol has had a rocky relationship with the state after company officials were challenged last year over reports of lavish spending and excess profits.