When it comes to issuing gift cards & gift certificates did you know that depending on which Province you are in, there may be specific legislation which governs issuing gift certificates and gift receipts? An example of this – in Alberta having an expiration date on a Gift Card is illegal as is having an expiration on a Gift Certificate IF it has an original cash. If you are providing gift certificates or gift cards, please make sure that you are aware of and follow the law(s) that governs your jurisdiction.
When it comes to a therapist issuing gift cards and or gift certificates it is important to note that gift cards/certificates cannot be direct billed to an insurance company, as no treatment is being provided at the time of purchase – to do so would be considered to be a fraudulent act, that if discovered by the insurance company may result in that company and others denying a therapist and/or clinic future recognition as a treatment provider. Further, the therapist may find themselves liable to repay any fraudulent claims where funds were distributed as a result of fraudulent direct billing. It is also important to note, that when providing a receipt for a gift card or gift certificate purchase, in accordance with CMMOTA Policy, that no CMMOTA membership number should be included on the receipt. This is to help prevent potential fraud in a client submitting the receipt for reimbursement by a health insurance company.
If you have issued gift cards/gift certificates, no doubt that you will likely soon begin to see these being used for treatments you provide. We want to make you aware of specific receipting procedures that you need to be aware of when it comes time for a client to pay using either a gift card or a gift certificate.
First, in accordance with CMMOTA’s Receipting Policies “A receipt issued when a gift certificate is used as the method of payment must list the method of payment as “Gift Certificate Redemption” or “Gift Card Redemption”.” This is to make it clear to any insurance provider that the payment was made through a gift card/certificate. Some insurance providers do not allow for reimbursement of a service that was paid for by a gift card/certificate, as there is no way to confirm who actually paid for the service.
Second, under no circumstance should a treatment which is paid for by a gift card/certificate be submitted directly for reimbursement to the client through an online billing system (e.g., Telus Health). If a client wishes to submit a claim where payment was made using a gift card/certificate, then they should do so using the receipt which you provide to them that includes the method of payment as “Gift Certificate Redemption” or “Gift Card Redemption.” This avoids you as the therapist, or as a clinic owner from potentially committing a fraudulent act.
Gift cards/certificates can be a great way for you to promote your business, and to provide you clientele with the opportunity to bless their friends and family with your services, but they must be handled in a way that is legally and ethically correct.
