R+L Carriers

Two happy R+L Carriers employees covered by CorVel's workers' comp care.

Strategic Solutions: Closing the Gap in Tail Claims


The Company

R+L Carriers is a leading global transportation provider driven by a commitment to superior service, safety, and innovation. With over 55 years in business, R+L Carriers have grown from a single truck to a fleet of 21,000 tractors and trailers. As a family-owned company, they prioritize customer satisfaction and invest in modern technology to ensure driver safety and infrastructure upgrades. Their core values revolve around treating customers and employees like family and delivering exceptional service.

The Partnership

In 2021, R+L Carriers formed a valuable partnership with CorVel for their workers’ compensation program. CorVel’s leadership in the industry and customer service philosophy delivered tailored solutions from the beginning.

By partnering closely with the client and developing targeted strategies to enhance the program, CorVel successfully closed out a substantial portion of tail claims, improving financial outcomes and lowering the total cost of risk.

Success in Tail Claim Closure

Tail claims can significantly impact a workers’ compensation program and financial stability. From the start of implementation, R+L Carriers sought an experienced partner to assist in tail claim closure to mitigate its impact on the program. The CorVel team demonstrated responsiveness as a partner, ensuring effective communication and collaboration throughout the claim closure process.

The primary objective of tail claims closure is to reduce the number of open claims and reserves. Upon receipt of R+L Carriers’ tail claim files, the CorVel team immediately worked to complete a file summary of claims details and develop a comprehensive plan of action. With claims information integrated into CorVel’s proprietary platform, CareMC Edge®, we streamlined communication between claims teams, ensured timely payment resolution, and increased the overall efficiency of R+L Carriers’ claims process.

To date (September 2023), the program has achieved remarkable success by closing 70% of tail claims. To achieve this, CorVel effectively prioritized claims and leveraged jurisdictional counsel when applicable. This approach resulted in positive change and significant reductions in total open claims for a client.

Improving Claims Resolution

The program also achieved significant improvements in lag time and reporting. The reporting lag time has decreased by nearly 50%, from an average of 9 days to 5 days. This reduction in reporting lag time facilitated quicker claims processing and decision-making, enhancing operational efficiency.

The program also successfully improved the indemnity/medical-only ratio, a crucial indicator of the mix between indemnity (compensation for lost wages) and medical-only claims. In 2022, the ratio reached an optimal level of 72/28%, signifying a more favorable distribution of claim types. The average time that indemnity and medical-only claims remained open also decreased year-over-year, indicating improved claims resolution efficiency.

Exceeding Savings Goals

The program achieved substantial savings amounting to $3.8 million. By strategically managing the medical aspect of claims and implementing cost-saving measures, the program generated significant financial benefits for R+L Carriers.

The program met and exceeded its goal of achieving a 100% closing ratio for claims. The overall program closing ratio for the fiscal year 2022 was an impressive 118%. This outstanding performance demonstrates the program’s commitment to efficient claims resolution and the dedication of the claims management team.

Continued Success

The collaboration between R+L Carriers and CorVel has led to impressive results across the program and in tail claim closure specifically. As a direct result of reducing open claims and reserves, R+L Carriers renewed their workers’ compensation program without any increase in premium. This outcome highlights the financial benefits of effective tail claims management and has set the tone for a successful partnership.

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