Why Some Transactions Require Card Use Verification

Kazdon and its partners have worked hard to make your Kazdon Healthcare Card easy to use.

Your Kazdon Healthcare Card is for use at healthcare providers and pharmacies and general merchandise stores that have an IRS-approved Inventory Information Approval System (IIAS) that can identify eligible expenses at the register. When you use your card at an IRS-approved merchant, your card transaction is automatically verified at checkout. You will not be asked to later submit a receipt to verify those eligible expenses. Before using your card, always visit the sigis.org site for a list of approved merchants that have an IRS-approved inventory system in place.

But because doctors’ offices, hospitals, ophthalmologists and dentists perform some services that are ineligible expenses under certain accounts, card transactions at these providers must be verified by submitting a copy of your receipt to Kazdon. Keep in mind that although your Kazdon Healthcare Card may be accepted as a payment methods, you may still need to verify card use by submitting copies of receipts.

When to Verify Card Use

If Kazdon is unable to automatically approve a transaction as an eligible expense, we will ask you to verify the transaction by submitting a copy of your receipt.

You’ll receive a notice when you log into your Kazdon account if you need to submit a receipt to verify a card transaction. You can also sign up to receive a card use verification alert by email or text message. Email alerts are sent 5-20 days after the transaction date.

Most companies specify that you have 30 days after the transaction date to submit a receipt to verify a card transaction. You have 30 days to:

• Submit a detailed receipt or documentation for the transaction;
• Submit a substitute receipt for the same or greater amount for an eligible expense that you paid for out- of-pocket and have yet to file a claim reimbursement; or
• Submit repayment back to your account for the amount of the unverified transaction.

After the 30-day deadline, your Kazdon Healthcare Card may be suspended, the unverified amount will be deducted from a future reimbursement claims, and any outstanding amounts may result in taxable event.

How to Verify Card Use

There are three easy ways to submit receipts to verify your card transactions:

1. Via the Kazdon mobile app. The mobile app makes saving copies of your receipt quick and easy. Once you’ve downloaded the app, log into your Kazdon account. Use the camera function on your mobile device to take a photo of your receipt. You can save all your receipts in the mobile app. If you’re asked to submit a receipt at a later date to verify a card transaction, you have them in the app and at your fingertips.

2. Via the Kazdon web portal. Log into your Kazdon account through the web portal. Click Submit Receipt or Claim. Follow the instructions to upload a digital image of your receipt.

3. Via fax/mail. Download, print, fill out a Card Use Verification form. Submit the completed form, along with copies of your receipts to:
Kazdon, Inc.
Claims Administrator
P.O. Box 29927
Austin, Texas 78755
Fax: 512-340- 0406

Required Receipt Information

The IRS requires that the receipts you submit to verify a card transaction must include these five pieces of information:

1. Patient’s Name: The name of the person who received the service or for whom the item was purchased. For retail store purchases, this information may be excluded.

2. Provider’s Name: The provider that delivered the service or where the item was purchased.

3. Date of Service: The date when services were provided or the item was purchased.

4. Type of Service: A detailed description of the service provided or item purchased. A bag tag is sufficient for prescriptions.

5. Cost: The amount paid for the service or product and/or the portion that is not reimbursed through your insurance carrier.

Please note a credit card receipt is not adequate for card use verification because credit card receipts don’t include all five pieces of information.

How to Avoid Card Use Verification Requests

We know it’s a pain to be asked to submit receipts to verify your Kazdon Healthcare Card transactions. There are a few things you can do to cut down on the number of times you receive card use verification requests:

Use your card at merchants, drug stores, or pharmacies that have an IRS-approved Inventory Information Approval System in place. Find out if your local pharmacy or drug store has an approved system by visiting the sigis.org site for a list of approved merchants that have an IRS-approved inventory system in place.

When paying for a service at a healthcare provider, make sure your Explanation of Benefits (EOB) or other service documentation includes the five IRS-required pieces of information:

1. Patient’s Name: The name of the person who received the service or for whom the item was purchased. For retail store purchases, this information may be excluded.

2. Provider’s Name: The provider that delivered the service or where the item was purchased.

3. Date of Service: The date when services were provided or the item was purchased.

4. Type of Service: A detailed description of the service provided or item purchased. A bag tag is sufficient for prescriptions.

5. Cost: The amount paid for the service or product and/or the portion that is not reimbursed through your insurance carrier.