California WC Medical Mileage Rate Increases to 58 Cents/Mile For Travel O/A 1/1/19

The IRS has announced that the standard mileage rate for business miles will increase from 54.5¢ per mile to 58.0¢ per mile effective January 1, 2019.  As a result, the amount payable to California injured workers for travel related to medical treatment or evaluation of injuries also will increase to the new rate.  Workers’ compensation claims administrators should apply the new rate for travel on or after January 1, 2019, regardless of the date of injury, but should continue to pay the current rate of 54.5¢ per mile for travel that took place in 2018. 

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.

The IRS Newswire released today notes that the increase in the standard mileage rate for business use was based on an annual study of the fixed and variable costs of operating an automobile, which include the cost of gasoline and depreciation.

The Institute has issued a Bulletin and a news release on the new rate, which are posted under the Communications tab on our website (www.cwci.org).  The DWC has been advised of the increase and is expected to issue a Newsline on the 2019 rate.  DWC Newslines are posted at www.dir.ca.gov/dwc/dwc_newsline.html.  

The mileage rate has changed multiple times over the past decade, so the Division has posted downloadable mileage-expense forms in English and Spanish that show applicable rates by travel date under “Medical Forms” on the Forms page of its website, www.dir.ca.gov/dwc/forms.html. The DWC is expected to post the updated forms with the 2019 rate soon, but given the upcoming holidays and the time required to update systems, you may want to give a heads up to your claims staff and system programmers that the mileage rate for medical travel on or after January 1, 2019 is increasing to 58.0¢ per mile.