Written by: Charles Taylor Matthews
Updated Mileage Rate in Louisiana Workers’ Comp
Effective January 1, 2026, Louisiana has implemented an updated mileage reimbursement rate for workers’ compensation claims. Pursuant to La. R.S. 23:1203(D), the mileage rate for reimbursable travel related to medical treatment has increased from $0.70 per mile to $0.725 per mile. While the increase may appear minimal, failure to apply the correct rate can carry significant consequences under Louisiana workers’ compensation law.
What the Mileage Reimbursement Covers
Under La. R.S. 23:1203(D), employers and insurers are required to reimburse claimants for reasonable mileage expenses incurred traveling to and from:
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Authorized medical treatment
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Pharmacy visits
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Diagnostic testing
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Other medically necessary services related to the work injury
Why This Change Matters
Louisiana courts consistently treat mileage reimbursement as a statutory obligation. When mileage is:
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Underpaid,
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Paid at an outdated rate
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Not paid timely
The employer or insurer risks exposure to statutory penalties and attorney fees, even when the underlying claim is otherwise being handled appropriately.
Importantly, disputes over mileage reimbursement often arise in otherwise routine claims and can quickly escalate into litigation that far exceeds the cost of the mileage itself.
Don’t Forget the Effective Date
The $0.725 per mile rate applies only to travel occurring on or after January 1, 2026. Mileage incurred in 2025 must still be reimbursed at the prior $0.70 rate.
As a result, any mileage submission that spans both 2025 and 2026 should be broken out by date of travel, and the appropriate rate applied to each segment. A single “blended” calculation using only the new rate can result in underpayment for 2025 trips and provide a basis for penalties and attorney fees.
Common Pitfalls
Some of the most frequent issues we see include:
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Continuing to apply the prior year’s mileage rate after January 1
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Applying the new rate retroactively to 2025 travel
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Partial payments based on outdated internal guidelines
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Delayed reimbursement following receipt of mileage logs
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Failure to clearly document mileage calculations
These errors are easily avoidable but frequently cited by claimant attorneys as a basis for penalties.
Best Practices Going Forward
To ensure compliance and limit exposure:
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Confirm that all systems and vendors reflect the $0.725 per mile rate effective January 1, 2026
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Make sure adjusters understand that 2025 mileage must still be paid at $0.70 per mile
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Instruct staff to separate and document mileage by date of travel when logs span multiple years
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Review mileage submissions promptly upon receipt
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Clearly document payment calculations in the claim file
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Train staff annually on statutory reimbursement updates
A proactive review at the start of the year can prevent unnecessary disputes and litigation costs later.