Q.- One of our health FSA participants submitted a receipt for 250 large bottles of contact lens solution. He is probably worried about a shortage during the coronavirus pandemic. Should we allow the full reimbursement?
A.- Probably not. It seems like your employee is stockpiling the contact lens solution. While contact lens solution is eligible for reimbursement from a health FSA, large quantities of an item that would not reasonably be expected to be used during the plan year is not an eligible expense. The IRS does not permit reimbursement for stockpiling. You can approve a reasonable amount of the solution or ask for documentation from a medical provider stating that the large amount is necessary.