New Mileage Rate Announced

Transportation expenses (personal vehicle, airfare, bus fare, etc.) may be reimbursed by your flexible spending account (FSA) when the transportation is primarily for, and essential to, medical care*. The Internal Revenue Service (IRS) has announced new mileage rates for transportation needed to obtain medical services incurred in 2012. The old and new rates are:

Old Rate
23.5 cents per mile
New Rate
Effective 1/1/2012: 23 cents per mile (a decrease of .5 cents per mile)

Transportation expenses for a personal vehicle can be reimbursed by the mileage rate listed above or you can be reimbursed by the actual amount spent on gas and oil (does not include expenses for general repair, maintenance, depreciation or insurance). Most FSA participants find it easier to use the mileage rates than the actual dollar amount.

When requesting reimbursement from your FSA, the following information must be included:

• Amount of miles
• Date of transportation
• Name of provider, such as doctor or pharmacy name

In addition to mileage for a personal automobile, the following are eligible transportation expenses:

• Parking fees and tolls
• Bus, taxi, train, plane fare
• Ambulance service
• Transportation for companion if accompanying a patient who is unable to travel alone
• Transportation for regular visits to see a mentally ill dependent if visits are recommended as part of the treatment
• Transportation to alcohol or drug rehabilitation meetings
• Transportation to pharmacy to purchase eligible expenses
• Transportation to provider for medical treatment

The following are NOT eligible transportation expenses:

• Transportation to and from work, even if the condition requires an unusual means of transportation
• Travel to another city if the primary purpose for the travel is not related to medical care, such as a vacation or a trip to visit relatives