McFarren, Todd

Todd McFarren, President of California Applicants Attorneys’ Association. He practices law in Watsonville and has served two terms as city’s mayor.

Why Workers Compensation Insurance Companies Don’t Need a Rate Increase

Todd-McFarren.jpgby Todd McFarren
California Applicants’ Attorneys Association


The insurance industry has misleadingly labeled the costs of denying and delaying medical care as “medical costs.”

Insurance carriers spent $550 million in 2008 on “cost controls.”
Insurers’ costs to review, and often reduce, delay, or deny recommended by the worker’s physician, more than doubled as a percentage of medical costs between 2002 and 2007 (California Workers Compensation Institute data included with the recent rate filing). During the same period, according to Workers Compensation Insurance Rating Bureau (WCIRB) data, payments to physicians consistently declined, dropping by 40% from 2003 to 2007.