Effective Date: July 1, 2008

Implementation Date: October 6, 2008

Medicare, under Part B, covers a specimen collection fee and travel allowance for a laboratory technician to draw a specimen from either a nursing home patient or homebound patient under section 1833(h)(3) of the Social Security Act and payment is made based on the clinical laboratory fee schedule.

The travel allowance is intended to cover estimated travel costs of collecting the specimen (including the laboratory technician’s salary and travel expenses

As of August 1, 2008, the per mile allowance rate of $1.035 cents per mile was computed using the federal mileage rate of $0.585 cents per mile for automobile expenses plus an additional $0.45 cents per mile to cover the technician’s time and travel costs. Medicare contractors have the option of establishing a higher per mile rate in excess of the minimum of $1.035 cents per mile if local conditions warrant it.

Under either method (i.e., flat rate allowance or per mile travel allowance), when one trip is made for multiple specimen collections (e.g., at a nursing home), the travel payment component is prorated based on the number of specimens collected on that trip (for both Medicare and non-Medicare patients) either at the time the claim is submitted by the laboratory or when the flat rate is set by the Medicare contractor.

Here is the link to the MLN Matters article MM6195 .