Question of the Week

Posted by BAS - 13 April, 2023

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Q.- One of our FSA participants purchased a large amount of over-the-counter items. She wants to be reimbursed for 25 bottles of ibuprofen and 25 bottles of acetaminophen. These are both over-the-counter medicines, but the quantity seems excessive. Do we allow the reimbursement?

A.- The quantity of items is most likely not eligible for reimbursement from a health flexible spending account plan. For a claim to be eligible for reimbursement, the IRS has unofficially commented that the eligible items purchased must be able to be used before the end of the plan year.  A participant may not purchase more items than they are able to use. If more items than may be reasonably used are purchased, the claim should be denied for “stockpiling.” 50 bottles of pain relief items could not reasonably be used by the end of a plan year.

Topics: Company News, Dependent Day Care FSA, Healthcare FSA, HR & Benefit Plans


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