June 9, 2022 – On June 9, 2022, the Internal Revenue Service issued Announcement 2022-13. This announcement provided a rare mid-year increase to the standard mileage rates for calculating deductible amounts associated with automobile travel for business, charitable, medical, and moving expenses. The standard mileage rate for medical travel increased from 18 cents per mile to 22 cents per mile. The increased mileage rate is applicable for medical mileage incurred on or after July 1, 2022. Medical mileage incurred between January 1, 2022 and June 30, 2022 will be reimbursable at the prior rate of 18 cents per mile, set forth in Notice 2022-03.
Medical mileage is eligible for reimbursement from Health Savings Accounts (HSA) or Health Care Flexible Spending Accounts (HCFSA). Medical mileage is not eligible for reimbursement from Limited Health Care Flexible Spending Accounts (LFSA) or Dependent Care Flexible Spending Accounts (DCFSA).
What you need to know:
- The standard medical mileage rate increased, effective July 1, 2022, from 18 cents per mile in to 22 cents per mile.
- The prior rate of 18 cents per mile is still in effect for medical mileage incurred between January 1, 2022 and June 30, 2022.
- Medical mileage may be reimbursed from a HCFSA or HSA, but not from a LFSA or DCFSA.
- To claim medical mileage, a participant must verify the expense traveled for was medically necessary and record the miles traveled to receive the service.
Please contact your account manager or business development partner at 800.532.3327 with questions regarding this adjustment.