On Friday, May 11, the Trump Administration released a 39-page “Blueprint to Lower Drug Prices and Reduce Out-of-Pocket Costs” (“Blueprint”). The Blueprint raises in very broad strokes potential Administration strategies to address what is perceived to be a national crisis in drug pricing. It is not, however, draft legislation, regulations, or guidance. At this point, it is nothing more than a series of aspirational proposals, ideas and questions. Inasmuch as the policy direction of the Administration can be gleaned from the questions it chooses to ask (and those it elects not to), however, this is an important document.

The Blueprint identifies four challenges that the Administration sees in the U.S. market for drugs: (1) high list prices; (2) seniors and government overpaying for drugs due to lack of tools with which to negotiate; (3) rising out-of-pocket costs for consumers; and (4) free-riding by foreign governments on American investment in innovation.