California WC Medical Mileage Rate To Increase For Travel O/A 1/1/13

Last Wednesday the IRS announced that the standard mileage rate for business miles will increase from 55.5¢ per mile to 56.5¢ per mile effective January 1, 2013. As a result, the amount payable to 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, 2013, regardless of the date of injury, but should continue to pay the current rate of 55.5¢ per mile for travel from July 1, 2011 through December 31, 2012.

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 week’s IRS announcement (http://www.irs.gov/uac/2013-Standard-Mileage-Rates-Up-1-Cent-per-Mile-for-Business,-Medical-and-Moving) noted that the 2013 mileage rates were updated following an independent, annual study of the costs of operating an automobile. The 2013 increase reflects generally higher transportation costs compared to a year ago, factoring in rising gasoline prices as well as other fixed and variable costs, including depreciation.

The Institute has issued a Bulletin and a news release on the new rate, which are posted on our website (www.cwci.org). The DWC expects to issue a Newsline on the 2013 rate once 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 of the string of mileage rate changes since 2008, the Division also has posted downloadable mileage-expense forms at http://www.dir.ca.gov/dwc/i&a_mileageform.pdf which show applicable rates based on the travel date. The DWC expects to post an updated form with the 2013 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.