The study drug itself is provided free by the trial sponsor, and the collection of research data are paid by the clinical trial sponsor. However, the clinical trial sponsor does not pay for routine standard of care medical costs. However, a clinical trial sponsor may reimburse for travel and hotel for patients who travel long distances to participate.
In 1991 President Clinton issued an executive order requiring medicare to cover the routine standard of care while on clinical trials. In 2000, North Carolina State Legislature passed a law requiring private insurance companies to cover routine medical care while on clinical trials. In 2010, the enactment of the Federal Affordable Health Care Act requires all private health care insures to cover the routine medical care while on clinical trials.