Reimbursing Medical Care-related Travel Expenses
The IRS has increased the per-mile reimbursement rate by $0.045 for July 1 to December 31, 2011.
Sept. 30, 2011--Employees with a Health Flexible Savings Account (FSA), Health Reimbursement Account (HRA) or Health Savings Account (HSA) are able to claim medical care-related mileage for reimbursement at a slightly higher rate for the second part of 2011.
This change is because the IRS recently increased the standard mileage reimbursement rate incurred for the purpose of obtaining medical care. For travel that occurs on or after July 1, 2011, the new rate is $0.235 per mile.
Use of the updated standard mileage rate is not mandatory. Employers may choose to update the eligible medical travel reimbursement aspect of their plan or keep the rate unchanged.
How it works:
- Mileage occurring Jan. 1, 2011, to June 30, 2011, must be paid at $0.19 per mile
- Mileage occurring July 1, 2011, to Dec. 31, 2011, may be paid at $0.235 per mile or at $0.19 per mile
Eligible travel expenses are transportation expenses that are deductible medical expenses under Code §213(d). Eligible travel expenses may include:
- Personal vehicle mileage
- Rental car costs
- Public transportation fees
- Toll fees
- Parking fees
Most plans do not specifically list the actual reimbursement rate and thus may not need to be updated to implement the change. However, employers should review their plan documents to determine if an amendment is required.
