California WC Medical Mileage Rate Cut 1/2 Cent to 57.5 Cents/Mile For Travel O/A 1/1/20

This morning the IRS issued a Newswire announcing that the standard mileage rate for business miles will decrease from 58.0 cents per mile to 57.5 cents per mile effective January 1, 2020.  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, 2020, regardless of the date of injury, but should continue to pay the current rate of 58.0 cents per mile for travel that took place in 2019. 

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 https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2020 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 2020 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 2020 rate soon, but given the holiday schedules this week and the time required to update systems, it would be advisable to give a heads up to your claims staff and system programmers as soon as possible that the mileage rate for medical travel on or after January 1, 2020 is decreasing to 57.5 cents per mile. 

BY/