Vibrant generic drug industry and generic drug market. We need to foster and nurture a new, competitive bio similar generic drug market, those are the generics for those really complex expensive biologic medicines. Need to foster and nurture that. We also have to get after Pharma Companies who engage in anticompetitive practices and try to block the entry of generics or bio similar products to market. Like for instance, blocking access to their products so they cant do the studies they need to do in order to get approval of an affordable generic or bio similar market. So we will go after all these kinds of abuses. Second, we have to bring more private sector negotiation and tools to our medicare programs so that we get the best deals. The part d Discount Program for Senior Citizens is now 15 years old. I was there when we created it and helped to launch it and when we did it, it was still a Great Program but it has the best tools, it was the best at negotiating great deals for our Senior Citizens and it was really able to drive tight formularies that were very efficient, and that is what has helped keep the cost of that Part D Drug Program down below forecasts. Over 15 years as so often happens with Government Programs it got frozen in place and the private sector kept adapting and learning especially after the economic crisis of 2007 how to control drug spend even better. Part d has more static. We need to bring more drugs to the program, we need to unleash them so we can drive great deals for our seniors. We also have another part of our program, a major part that is called part b. These are the drugs that the physician administers. These are paid right now on a list price plus a markup. They sent us a bill and we write a check. Theres no negotiation involved in that at all and the president has proposed in his budget and we are reemphasizing. We have to figure out how to move those drugs especially the high cost ones into the private part d drug plan negotiation so that we can get a deal and start getting bargains on that for seniors and for taxpayers. We need to look at other mechanisms and you see that in the blueprint, some other ones, that also help us negotiate better deals there for those plans. Third, and this is a very complex area. Right now we have to have to bring incentives to lower list drug prices. Right now, every incentive in the system is too increased and have high list of drug prices. Everyone in the system except a patient and the taxpayer is wetting therapy along the way. They are getting a percent of that. List price goes up, list price is higher and everyone makes more money on the way. The math just works that way. We need to try to flip the incentives backwards so that financially it makes less sense to increase prices. So one of the things that we are going to do, and i talked about this in the rose garden. We are having the fda look at how we can require and direct consumer tv ads that you have to disclose the list price of your drug. We believe its a fair part of the balance if you are having a discussion about the drug, its material and relevant to know if its a 50,000 drug or a 100,000 drug because often the patient has to bear lots of that cost. In addition, we have in medicaid and medicare some key incentives that we can turn around on list prices. As part of obamacare, one of the deals with the Pharma Industry was capping the statutory rebate on drugs in the Medicaid Program at 100 . We are going to work with congress to look at overturning that cap on rebates. That again will make the map work so that when you increase your list price, its going to cost you more money if you are a pharma executive thinking about raising prices. We are also thinking about some really Creative Ideas in our program of reversing those incentives. So right now in our drug Discount Program, if you have a drug that fits into one of these protected classes, its almost impossible for the drug plan to negotiate and get any kind of discount from you. Well, everyone gets that. What if instead we say, you only get to be in that protected class if you havent raised your list price in the last 18 months. What do we say, you can be exempt from those specialty tears where a person has to pay a lot outofpocket, but only if you havent increased your list price in the last 18 months. The other big area we have to look at is the entire system of rebates that we have with pharmacy benefit managers. We are calling into question today the entire structure of using rebates as the method of negotiating discounts in the pharmacy channel because right now, every incentive is for the drug company to have a very high list price, and what if instead we said no rebates, flat price, fixed price and the contract, and that removes them and makes people different and what the list price is in that system. That takes away the incentive or even the pharmacy manager makes money from the higher list prices. That is the role of compensation for pharmacy. They are also getting compensated by the Drug Companies they are supposed to be negotiating with. They are getting administrative fees. Should we moved to a fiduciary model, and only as compensated by the Insurance Company and individual forbid renumeration, so its all completely on one side there, complete alignment of interest. Finally, how do we lower outofpocket drug costs . We are going to get rid of these gag rules. Some pharmacy benefit managers are telling pharmacists that you are not allowed to tell the patient that if you paid cash for this generic drug, it would be cheaper for you. We think that is unconscionable. If you are sitting there with your doctor, we want you to know what youre outofpocket will be for the drug that you are prescribed in your drug plan. You ought to have information on what you would pay outofpocket for that. And yet they write you a drug that might be an infused drug, and if you had a doctor that instead review a self injectable drug, you have a 20 copay and you could at least have an informed discussion. That will also help with savings and systems. These are just some of the measures, and they dont like you are learning, open and hearing. They want us to be active ongoing process, and, Prescription Drug affordability and history by any president and im grateful that President Trump is standing by and encouraging us to do these kind of bold measures. With that said, let me open it up to questions. There is a tremendous number of moving parts in this blueprint. Many of which will require legislative action. How much of this works without the rest . Do you have to do it all or just part of it, and how much can be done through executive action . Thats a great question. Most of this we believe can be done by executive action. So many of these solutions ought to be attracting bipartisan support, and, lets go for breaking news interrupt for a moment, mike pompeo is set to speak. The foreign minister is speaking at the state department. Live coverage on fox news. Lets listen. 65 years ago, tens of thousands of koreans and american sacrifice their lives and the pursuit of freedom for south korea. In the years since, citizens of south korea have taken the hard earned freedom and turned it into an economic wonder. The sixth largest trading partner in the United States and a key force multiplier for u. S. Leadership in the world. The u. S. Republic of Korean Alliance has been fortified, an and, it the Forward Deployed base of the ironclad u. S. Commitment to the security of the republic of and its people to the entire region. The prospect of peace and security in the Korean Peninsula and across the Asian Pacific region as why we have stood shoulder to shoulder for six decades. Just yesterday, i returned after having productive discussions with chairman kim jong un and preparations for President Trumps summit with him. It was an honor to negotiate the safe return of three u. S. Citizens and bring them home to freedom. We wish these americans and their families the best as they reconnect after a very difficult time apart. On behalf of the american people, we say, welcome home. The release of threes three citizens at a successful meeting between President Trump and chairman kim. We look forward to our preparations to make the summit in singapore on june 12. A true success for the american, and Korean People and the world. I congratulate south korea and north korea on their historic meeting last month. The United States is encouragedd by president moon and chairman kims goal. Today, we discussed the summit, my trip to north korea and the bold step President Trump is about to take when he meets with chairman kim. We would not be where we are today without the close and coordinated leadership of President Trump and moon. The United States of the republic of korea remain committed to the irreversible denuclearization of the Korean Peninsula. If chairman can choose is the right path, there is a future brimming with peace and prop prosperity for the north Korean People. Americas track record of support for the Korean People is secondtonone. If north korea takes bold action to quickly denuclearize the United States work, the United States looks forward to close cooperation with our south korean allies on this issue and many others. Foreign minister, thank you for being with us today. It was a pleasure to work with you. Thank you very much mr. Secretary for the very warm welcome. Let me reiterate my congratulations on you becoming the top diplomat of the United States at this historic moment. Secretary pompeo, you have already been at the center of our joint efforts on north korea, and i very much look forward to working closely with you. We spoke on april 28, right after the momentous interkorean summit. And we spoke moments after his return. During our meeting, i congratulated him and President Trump for the successful release of the three u. S. Citizens, all korean american, from north korea. And over the past weeks, both korea and the United States have been engaged in intensive diplomatic efforts. We briefed each other on the latest endeavors. Including his visit and the trilateral summit in tokyo, which adapted a safe statement and expressing their strong hopes for the success of the success of the summit. And thats between President Trump and chairman kim in singapore. We agreed that the summit would be a historic opportunity for resolving the nuclear issue. We reaffirmed that our goal is to achieve the complete verifiable and irreversible denuclearization on the Korean Peninsula. The next few weeks will be critical. Airtight coordination between our two countries. As announced, president moon will visit washington, d. C. , soon to meet with President Trump. Take the close communication and trust between President Trump and moon will be the driving force that has brought us to the point of breakthrough for the denuclearization and peace on the Korean Peninsula so they are meeting on the 22nd and that will be instrumental in preparing for a successful u. S. North korea summit. And the u. S. Alliance will celebrate the 65th anniversary this year, as long served as a linchpin for peace and stability on the Korean Peninsula and in the region. We also reaffirmed that for the last 65 years, the u. S. Fk, the United States forces in korea has played a crucial role for deterrence, peace and stability of the region. We would like to emphasize again that the u. S. Military presence in korea is a matter for the rok u. S. Alliance in korea first and foremost. After todays meeting, im even more confident that our alliance is as robust as ever and there is no daylight in our cooperation on the denuclearization and peace of that it peninsula. Once again, i would like to thank secretary pompeo for todays fruitful discussion and look forward to building a close working Partnership Relationship with him. In addition to the upcoming summit meeting in washington, d. C. , on may 22, i hope to see him again and reciprocate the hospitality. Soon. Thank you very much. We have time for two questions total. The first goes to fox news. Thank you, mr. Secretary. You just mentioned and have mentioned before that you are looking for permanent, verifiable, irreversible new denuclearization. How does the United States defined that . Is it inspections, a full facility dismantling, more or less than that . And you have had more subsequent conversations with kim jong un then any other westerner. What is your impression of him . Is he rational, whats it like to talk to him . And to the foreign minister, are there any sanctions or relief to north korea before the summit between resident trumpet and a kim jong un . What kind of outcome does south korea need to secure its security and does not include the maintenance of current u. S. Military assets in the region. Thank you very much. I have spent more time with chairman kim, other than perhaps president moon, working on this incredibly important challenge that lays before the world. President trump and the world who set the conditions for a successful outcome from june 12th and the activities that are necessary to follow there from. You asked about my conversations with chairman kim, this question is sort of undignified, and the conversations involved deep complex problems, challenges and the strategic decision that the chairman has before him about how it is he wishes to proceed, and if he is prepared in exchange for the assurances that we are ready to provide to him, if he is prepared to fully denuclearize. And, they took that time to ensure that we didnt end up in the same place that we did before. And not only the United States but the world with nuclear weapons. In order to achieve that, it will require a robust clarification program, and one that we will undertake with partners around the world, which will achieve outcome in a way that frankly no agreement for them is set forth. We have an opportunity to have a good sound discussion so i think we have a pretty good understanding between our two countries about what the shared objectives are. There are some videos that have been released. Our conversations were warm. We were each representing our two countries making sure that we were trying our best, and we had good conversations about the history of our two nations and the challenges that we had between us. And we are now close partner with them and we hope we could achieve the same with respect to north korea. Shepard smith reporting here. I want to go to Jennifer Griffin at the pentagon who is monitoring this with great interest as im confident we were. Jennifer, that seems like the question all along. Or more precisely, do the United States and north koreans define nuclear in the same way and, do they come together . Hearing secretary of state mike pompeo who has spent more time with kim jong un than any other leader in the world, and pompeo mentioned of course that the south korean president , president moon, has spent time with kim jong un. But do they define denuclearization the same way . What kind of assurances can we provide to kim jong un so he would give up the 70yearold Nuclear Program that has been the dream of his father and grandfather. Its clear that the south koreans and the u. S. Are planning to provide economic incentives. They were asked whether sanctions would be lifted before the summit on june 12th and they did not answer that. Theres going to be a summit here in washington, d. C. , with the south korean president , and that will help in terms of hammering out some of these issues. It was interesting hearing secretary of state pompeo described his meeting with kim jong un just days ago as he was securing the release of those prisoners as warm. That is not the way that we have heard kim jong un described in the past, and certainly if you think of it as hundreds and thousands of blessed prisoners in labor camps in north korea, thats not how you would think of the leader. But clearly, they are trying to set the tone for a successful summit. I think its also notable where they are going to have that summit. It will be in asia or singapore, and its unusual for kim jong un to leave his country. The loss of confidence building taking place in a short amount of time. Shepard lets turn to Nicholas Johnson now, editor in chief at axis. Are we closer to something here or are we in rhetorical flourishes land . I think we are setting the stage. We have had good first meetings and this is only the beginning of a long process. And how do you define the denuclearization . The phrasing that secretary pompeo used, robust verification, and thats where this kind of deals full apart. And we wont know the answer to those questions until the summi summit. Is the goal the end with us or, is there something more compromising the middle . Thats been our stated policy. You have to get rid of all your nukes, and, we wont give you quite that. Like you said, its been very consistent for many, many decades. And what