The Division of Workers’ Compensation (DWC) announced the decrease of the mileage rate for medical and medical-legal travel expenses by one-half cent to 53.5 cents per mile effective January 1, 2017.

This rate must be paid for travel on or after January 1, 2017 regardless of the date of injury.

Labor Code section 4600, in conjunction with Government Code section 19820 and the Department of Personnel Administration regulations, establishes the rate payable for mileage reimbursement for medical and medical-legal expenses and ties it to the Internal Revenue Service (IRS).

The Internal Revenue Service issued the 2017 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. IRS Bulletin Number IR-2016-169 dated December 13, 2016 announced the rate decrease.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

There has been a steady decrease in mileage reimbursement rates since the 2015 rates which were 57.5 cents/mile. The decreases are largely the result of lower fuel costs nationwide.

The updated mileage reimbursement form is posted on the DWC website.