The tactic helps insurance companies counter high drug prices, but patient advocates are working to ban them.
Dan Gorenstein of Tradeoffs explains what factors the federal insurance program will look at and what the next steps are.
The limited plan would, for the first time, give Medicare the power to negotiate prices directly with pharmaceutical companies.
A federal judge has issued an injunction to the Medicare rule change, saying the administration rushed it through.
The president is expected to meet with pharmaceutical industry executives, who are opposed to the changes, on Tuesday.
Some members of Congress feel the measure might go too far. Drug companies don’t like it, either.
The answer comes down to one key tactic: negotiation.
The idea is that transparency would lead to more competition and lower costs. One drug company is already on board.
Lawmakers have been critical of big pharma's pricing structures.
Prescription drug prices have been rising over the past few years.