Americans who opt to participate in clinical trials would have their payments exempted from their gross income for tax purposes under a bipartisan bill introduced on June 26 by U.S. Rep. Mike Kelly (R-PA).
“By exempting these payments from gross income, we can alleviate this burden and make participation in clinical trials more accessible and accommodating to individuals’ lives,” Rep. Kelly said. “This legislation puts the patients first and aims to improve both patient care and patient outcomes.”
The congressman sponsored the Harley Jacobsen Clinical Trial Participant Income Exemption Act, H.R. 4184, alongside lead original cosponsor U.S. Rep. Chrissy Houlahan (D-PA) to amend current law that stipulates payments that are not categorized as reimbursements are considered taxable income.
This disparity, according to the lawmakers, can create a financial burden for participants, particularly those in lower income brackets.
If enacted, H.R. 4184 would provide greater access to experimental therapies to the least-empowered Americans (those with disabilities, chronic physical illness, low-income populations, low education level, etc.).
The bill also would eliminate the reporting requirements for the payment recipient and the 1099 reporting requirement of the payor to protect participants who rely on social welfare programs from exceeding income requirements, according to a bill summary provided by Rep. Kelly’s staff.
“Clinical trials often take a toll on participants’ time and finances, resulting in less economic diversity in these studies and fewer people able to take part in them,” said Rep. Houlahan, noting that H.R. 4184 would “not only increase access to these trials and diversify those participating, but would also allow for better advancements in our medical research as a result of including a more comprehensive patient population.”
H.R. 4184 has been referred for consideration to the U.S. House Ways and Means Committee.