Calif WC Medical Mileage Rate to Decrease Cent for Travel o/a 1/1/14

Last Friday afternoon the IRS announced that the standard mileage rate for business miles will decrease from 56.5¢ per mile to 56¢ per mile effective January 1, 2014. As a result, the amount payable to California injured workers for travel related to medical treatment or evaluation of injuries also will decrease to the new rate. Workers’ compensation claims administrators should apply the new rate for travel on or after January 1, 2014, regardless of the date of injury, but should continue to pay the current rate of 56.5¢ per mile for travel from January 1, 2013 through December 31, 2013.

California workers’ compensation medical mileage requirements [LC §4600(e)(2)] work in conjunction with Government Code 19820 and Department of Personnel Administration (DPA) regulations. Claims administrators are required to reimburse mileage at the rate adopted by the DPA Director for non-represented (excluded) state employees, which is tied to the IRS published mileage rate.

Last Friday’s announcement by the IRS (http://www.irs.gov/2014-Standard-Mileage-Rates-for-Business,-Medical-and-Moving-Announced) noted that the 2014 mileage rates were updated following an independent, annual study of the costs of operating an automobile. That study factors in gasoline prices as well as other fixed and variable costs, including depreciation.

The Institute will issue a Bulletin and a news release on the new rate, which will be posted on our website (www.cwci.org). The DWC is expected to issue a Newsline on the 2014 rate after the DPA issues a Personnel Management Liaison memo announcing the change to state agencies and departments. DWC Newslines are posted at http://www.dir.ca.gov/dwc/dwc_newsline.html. Because the mileage rate has changed multiple times since 2008, the Division also has posted downloadable mileage-expense forms at http://www.dir.ca.gov/dwc/forms.html which show applicable rates based on the travel date. The Division is expected to post an updated form with the 2014 rate soon, but given the upcoming holidays and the time required to update systems, claims administrators may wish to alert their system programmers of the upcoming change. 

BY/