How Gas Prices Affect Travel Nursing
I don’t know about you, but let’s talk about a sore subject right now – rising gas prices! Since Lynda recently started working as a Traveling Home Health Nurse, the rising gas prices have begun hurting our pocketbook. The problem is that even though she gets mileage reimbursement, the system of how it’s calculated is a bit flawed. So let’s take a closer look at the reimbursement rates for traveling nurses, rising gas prices, and some ways to make up the difference.
How mileage reimbursement is calculated for travel nursing
Lynda’s mileage reimbursement is based on annual guidelines set by the IRS and GSA (General Service Administration). But, being that it’s based on fixed and variable costs of operating a vehicle, we’re definitely wondering who came up with this idea and how.
The whole thing is run by an independent organization that adjusts the reimbursement rates nationally. Unfortunately, it does not account for variations in gas prices around the country. Currently, the mileage rate for 2022 is .585 cents a mile which is an increase of .025 cents from the previous year.
Driving in California is more expensive for traveling nurses in California
This means that we’re getting the short end of the stick just because we’re in California. California currently has the most expensive gas (at $5.91 per gallon) in the country. Yet traveling nurses working here get the same reimbursements as traveling nurses working in other states where the gas is as low as $3.96 (in Minnesota)!
Actual average gas prices vs. pre-determined reimbursement rates
Currently, the average gas price nationwide is $4.236 per gallon. And according to the EIA (Energy Information Administration), gas prices have risen by over $1 in the past year. However, the GSA only increased the mileage reimbursement for traveling nurses by .025 cents per mile.
To sum it up, Lynda’s reimbursements don’t come to close to covering what it costs us to fill up. Traveling nurses in California are currently paying $1 more per gallon than last year but only receive .025 cents more per gallon in adjustments.
So, traveling nurses are losing money on fuel costs because the predetermined adjustments are not adequately making up for the rising gas prices.
Use Apps like Gas Buddy to offset rising fuel costs
One thing we are doing to combat the issue is shopping around for the best gas prices in the area. Thanks to Gas Buddy, we have found a gas station about 3 miles away with gas being sold .38 cents cheaper per gallon than the Arco gas station around the corner, currently selling gas at $5.89 a gallon.
If you haven’t heard of Gas Buddy, it’s a free app via the Android Playstore or Apple Play. Using it helps us keep tabs on gas prices, both locally and while traveling. Especially with rising gas prices, apps like Gas Buddy are a helpful tool that can potentially save hundreds or thousands of dollars per year.
Remember to doublecheck GSA reimbursement rates
If you are a traveling Home Health Nurse like Lynda, remember to double-check your reimbursement rates to ensure you’re getting the full GSA rate (.58.5 cents per gallon) on every assignment. If not, you’ll wind up covering the differences with cash in your pocket. Now, let’s just hope gas prices come down soon, it’s been a bit expensive lately!