Surveillance bill moves ahead: Legislation seeks to limit spying on workers’ compensation claimants. [The Pueblo Chieftain, Colo.]

Feb. 24--DENVER -- A witness from a House committee hearing last week on a bill aimed at limiting surveillance on workers' compensation claimants said he was spied on again over the weekend.

The insurance company that he suspects was conducting the surveillance denied it has watched him in years.

Jim Elson, 55, of Pueblo, testified last year during an interim committee hearing on the practices of Pinnacol Assurance, the state's quasi-governmental workers' compensation assurer of last resort -- that holds about 65 percent of the market share.

Elson again testified last week before the House Judicial Committee as it reviewed HB1012, sponsored by Rep. Sal Pace, D-Pueblo, that seeks to limit surveillance on workers' compensation claimants to instances when probable cause to suspect fraud exists.

After Elson testified, the House Judiciary Committee passed the bill on a 6-4 vote after amending it to remove a provision granting claimants expedited hearings. Elson told The Pueblo Chieftain that he is familiar with surveillance practices by the insurer, because he was subjected to it while his claim was pending. He said he's frustrated and frightened by the spying that has taken place since his claim was settled, in particular that it took place soon after each of his two appearances airing grievances against Pinnacol before legislative committees.

After 18 years of employment in several positions with the state, Elson, a registered nurse employed at the Colorado Mental Health Institute at Pueblo, filed a workers' compensation claim in February 2006 after suffering two injuries on the job during an eight-day span.

He worked in the maximum-security forensic division of the hospital treating patients who'd been disruptive in the prison system or who had been deemed incompetent to face trial for criminal charges.

"These were some bad boys," Elson said, "guys that'll hurt you in a minute."

And Elson said they did hurt him. Among his injuries were back trauma that required surgery, reconstruction of his right arm and extensive damage to his left arm. Elson also suffers from post-traumatic stress disorder and major depression resulting from his work, he said.

"I'm on more medications now than any of my patients were."

On Saturday, Elson said his son noticed someone watching their house from the end of his driveway in the upscale Regency Ridge neighborhood. It wasn't an unfamiliar sight, as surveillance had been conducted on the place while Elson's claim was pending.

That was proven by a videotape obtained by his attorney, which showed 30 minutes of everyday activities ranging from moving around in his garage to trips to the store.

Pinnacol had amassed the footage through a private investigator who followed Elson for nine weeks.

Suzi Stolte, a Pinnacol spokeswoman, acknowledged the company had conducted surveillance on Elson, but not lately.

"We've checked our records, and we have not conducted surveillance on Mr. Elson since mid-2007," she said. "It would be highly unusual for us to conduct surveillance on a case that was settled."

Elson said his case was settled in May 2007, in part out of frustration over what he says was overzealous surveillance and denial of medical procedures he needed by Pinnacol added to his mental disruptions.

"I felt so intimidated, so threatened, that I just wanted it over, so I settled," Elson said. "My pay's been cut by $2,800 a month. My family struggles. But to me it was worth it to have Pinnacol out of my life."

Elson admits he can't prove it, but suspects Pinnacol is back in his life following two rounds of testimony before the Legislature.

He confronted a man in a sport utility vehicle parked just outside his driveway on Saturday. After they traded heated remarks, Elson said the man admitted he was conducting surveillance, but wouldn't say for whom or whether Elson was the subject of the spying.

Soon afterward, the SUV left, and was replaced by a car occupied by someone other than the first driver, Elson said.

He reported a similar occurrence last year after his testimony before the interim committee.

Elson said he's unlikely to testify before the Legislature again after his latest experience.

Stolte said Pinnacol does not conduct surveillance on anyone based on testimony in the Legislature.

"We initiate surveillance to find out or confirm facts in a case, nothing else," she said.

Only when certain "red flags" are raised is surveillance initiated, she said. Among those are inconsistent reports about an accident, medical findings that dispute injury claims, claimants who are reported to be unusually active for the injuries they claim, claimants missing medical appointments and injured workers' failure to answer repeated phone calls from Pinnacol.

Pace said his bill would assure that surveillance activities by Pinnacol and other insurers was confined to cases where there is a legitimate question about fraud.

"A reasonable basis for their suspicions is all I'm asking (insurers) to have before they initiate surveillance on injured workers," Pace said. "It's the lowest standard possible. If they have an ounce of suspicion, they can spy on anybody. This bill wouldn't change that."

Stolte said Pinnacol opposes the bill because "it can add costs to the system and hinder our ability to do any investigation, and those investigations often require a quick response."

Pace's bill is scheduled to be heard by the House Appropriations Committee on Friday. Elson said he is unlikely to be there.

"I've put this in Sal Pace's hands," Elson said. "I want to see what he'll do with it. I hope the Legislature doesn't turn a blind eye to me the way Pinnacol did."

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