CMS INCREASES TRAVEL ALLOWANCE

The IRS increased the federal mileage reimbursement rate to $0.555/mile, effective July 1, 2011, to help offset the increase in the cost of gas. While CMS follows the IRS mileage rate in establishing the travel allowance for clinical laboratories, this update does not happen automatically at CMS. The National Independent Laboratory Association (NILA) has forwarded several letters and emails to officials at CMS urging them to adopt the new rate quickly, as this is important to laboratories with technicians who must travel daily to collect specimens. 

On August 26, CMS released an official transmittal authorizing the update of the federal mileage reimbursement rate to $0.555/mile. Click here to view a copy of CMS's transmittal, and click here to view the CMS's MLN Matters newsletter regarding the change in the mileage rate. 

NILA inquired with CMS as to the discrepancy in the "effective date" of July 1, 2011, and the "implementation date" of October 29, 2011, and learned that CMS is required to give the carriers 90 days from the release of the transmittal (August 26) to update their systems to process claims at the new rate.

Once carriers make the update, laboratories will be able to resubmit any claims that have been processed since July 1, 2011, at the lower rate to have them re-processed at the new rate.  Regarding the funding issue, carriers are responsible for finding room in their current operating budgets to pay for this increase.  To date, CMS has not received any comments from carriers claiming that they cannot pay the new rate.  

All carriers have received the transmittal updating the mileage rate to $0.555/mile and should be able to pay the new rate as soon as they are able to update their systems.  Laboratories that experience problems with carriers paying the new rate are asked to contact the NILA office by telephone: (314)241-1445 or email: nila@nila-usa.com.