Cutting Edge Medicine And Mandatory Taxes: A Clash Of 2 Worlds, A Detriment To Us All

By Arpeeneh Adamian, Tax Director

Could clinical trial compensation taxation be hindering the development of cutting-edge medications? Frontline clinical researchers say “yes,” and it’s more common than acknowledged. A diabetes patient reported significant hardship due to his $50 stipend per visit, which led to the loss of his food stamps. This story underscores the financial burdens that deter participation in clinical trials, with only 5% of eligible patients enrolling due to costs like transportation and dependent care.

Despite efforts by sponsors to neutralize these costs, combining payments and reimbursements, participants still face financial crises that lead to missed appointments and dropouts, thereby impeding trial progress and the timely arrival of new medications to market.