1. (1) Travel that is necessary and that is directly related to the operation of the nursing facility claiming reimbursement for the expense will be an allowable cost for reimbursement purposes pursuant to the following specific provisions:

   1. (a) Automobile:

      1. 1. Since the form of vehicle ownership, the type, and the number of vehicles utilized will vary depending on a facility's specific needs, reimbursement will be based on a standard mileage rate and will be limited to mileage which is documented by log entries prepared in accordance with either of the attached sample logs. (See Schedules 13-A and 13-B at end of chapter.) Reimbursement to employees for the use of theirpersonal vehicles will be limited to the lesser of the actual reimbursement to the employee or the standard mileage rate per section (1)(a)3. of this rule.

         All log entries must be made at the time of travel, and log entries will be subject to verification during audit. Failure to timely and accurately account for travel mileage will result in a disallowance of this cost.

      2. 2. Commuting mileage between the commuter's residence and the nursing facility is not allowable mileage for reimbursement purposes. (See Schedule 13-A at end of chapter.)

      3. 3. The standard mileage rate is as follows: The IRS mileage rates in effect on January 1 of the calendar year in which the cost report is filed (January 1, 1990, for cost reports filed as of June 30, 1990). These rates will be applied on a per provider basis regardless of the number or type of vehicles used. (See Schedule 13B at end of chapter.) In addition to the mileage rate listed above, up to $1,000 in actual operating costs (i.e., gas, oil, upkeep) of one automobile per nursing facility may be reimbursable. There will be no additional reimbursement in those instances in which the facility auto is used for commuting purposes of the administrator or nonpatient care related activities. To qualify for this additional allowance, the facility must own or lease a vehicle, the vehicle must be used only for purposes of patient care, and actual operating expenses must exceed the computed mileage allowances. In no instance will the facility be allowed to claim more than the standard allowance plus the $1,000 (if computed allowance is less than operating cost) or actual operating costs, whichever is less.

         Examples:

         Facility Owns Vehicle	Medicaid Mileage Allowance	Actual Operating Expense	Allowance
         Yes	$ 2,325	$ 2,115	$ 2,325
         Yes	$ 2,325	$ 4,125	3,325
         Yes	$ 2,325	$ 2,765	2,765

         If the facility does not own a vehicle, reimbursement will be limited to actual payments to employees for use of their personal automobiles for documented facility business, provided that such reimbursements do not exceed the allowable rates. (IRS guideline)

      4. 4. No additional reimbursement in excess of $1,000 will be recognized for any other automotive-related cost. Thoseadditional costs which will not be recognized include, but are not limited to:

         1. (i) Depreciation.
         2. (ii) Interest on automotive loans.
         3. (iii) Lease/rental expense.
         4. (iv) Taxes, tags and insurance.
         5. (v) Return on equity.
      5. 5. No reimbursement will be made or considered for unusual or impractical vehicles, which include but are not limited to aircraft, motorcycles, farm equipment and other vehicles not necessary to the efficient operation of the facility.

   2. (b) Other travel:

      1. 1. Costs of travel to out-of-state conventions or association meetings will be limited to those reasonable costs incurred by a facility for two trips during each fiscal year. If the facility bears the expenses of two persons attending the same convention or association meeting, such attendance will be counted as two trips. Reimbursement will be considered only for bona fide employees of the facility whose attendance will benefit the operation of the facility. Expenses related to travel expenses of employee spouses will not be eligible for reimbursement unless the spouse is a bona fide employee of the facility and has a legitimate reason, related to patient care, for such attendance. Since only patient care related travel is allowable, evidence must be on file to verify that the travel was patient care related. Such evidence may be: (a) seminar registration receipts, (b) continuing education certificates, (c) similar documentation. If verification cannot be made, reimbursement will not be allowed. Out-of-state travel living expenses will be limited to $125 per day for the length of the functions attended. Per diem for the date of return will be limited to $50.00 because lodging is not required.
      2. 2. Transportation expenses in- or out-of-state will be limited to the ordinary and necessary costs of transportation, food, lodging, and required registration fees.
      3. 3. Whenever out-of-state travel could be accomplished at a lower cost by utilizing air travel, reimbursement will be limited to the costs which would have been incurred if such airtravel had been utilized and the costs normally incident to such air travel (meals, lodging, etc.).
      4. 4. No travel expenses of a nonbusiness nature will be reimbursed.

      5. 5. Travel which requires an overnight stay must be documented by a travel voucher which includes the following:

         1. (i) Date.
         2. (ii) Name of person.
         3. (iii) Destination.
         4. (iv) Business purpose.
         5. (v) Actual cost of meals and lodging (lodging must be supported by invoices, meal receipts must indicate number of meals served for any meal in excess of $20.00).
         6. (vi) Air, rail and bus fares (supported by an invoice).

Author: Susan Mims

Statutory Authority: State Plan; Title XIX, Social Security Act; 42 C.F.R. §§447.200 - .272, et seq.

History: Rule effective October 1, 1982. Amended effective May 15, 1983; July 9, 1984; September 8, 1984; February 9, 1989; October 1, 1990. Emergency rule effective September 12, 1991. Amended: effective December 12, 1991.