05/06/17 – The New York Times
Article emphasizes that the health care industry has created jobs at more than three times the rate of the rest of the economy since 2007, and that the Affordable Care Act repeal may hurt local economies. “If there is a group that loses out the most, it’s near-seniors. Their health care is so expensive, but the tax credit in the House bill caps out at $4,000,” said Professor Craig Garthwaite. The article was also picked up by CNBC.
05/05/17 – Chicago Tribune
Article discusses how Advocate Health Care, Illinois’ largest hospital system, is making $200 million in cuts in response to financial pressures such as reimbursement rates from federal and state insurance programs that don’t cover the cost of caring for patients. “I think some of them [hospitals] are just hitting a pause for a second to figure out what the world’s going to look like in a year,” said Professor Craig Garthwaite.
05/05/17 – Forbes
Article discusses how Kellogg student Ashwin Halgeri’s upbringing helped his team, EduIndia Fund, create the winning proposal of the 2017 Kellogg-Morgan Stanley Sustainable Investing Challenge. Halgeri and partners Erica Hoeveler and Chris Shaw developed an investment vehicle to expand access to high-quality, low-fee private schools in India, aiming to help more children from low-income families attend school and remain in class, rather than drop out for financial reasons.
05/04/17 – Bloomberg
Article discusses how pharmacy-benefit managers (PBM’s) often put auditors in secure rooms, limit the number of contracts they can see, and restrict and review note taking. Professor Craig Garthwaite mentions that any restriction on audits “gives an advantage to the PBM,” and that “PBMs have no reason to want to shine a light on it.”
05/04/17 – Marketplace Radio
Article discusses how, in the new GOP health care bill, Republicans plan to have insurance companies charge people more if they have a pre-existing condition. “So imagine we’re making a model airplane. They want to make one with one wing and one landing gear, but not think about ‘What does it take to make this health insurance airplane get off the ground?'” said Professor Craig Garthwaite.
04/28/17 – Bloomberg
Article discusses how, in light of the Anthem Inc.-Cigna Corp. merger being shot down, speculation has begun regarding the next health-insurance megadeal, likely involving Humana, which specializes in the business of selling private health plans for the elderly. “There’s a new sheriff in town, so you might be less concerned about what the agencies think of your merger,” said Professor Amanda Starc.
04/28/17 – Reuters
Although Amazon recently hit an all-time high in sales, there is growing concern that investors may start viewing the company more like a conglomerate, due to its ventures extending far beyond online retail. “High growth covers a lot of sins. Picture yourself running the company where one minute we’re talking about how we’re going to operate air cargo, and the next minute we’re going to talk about artificial intelligence. I don’t think it’s sustainable,” said Professor Harry Kraemer. CNBC.com, Business Insider, and The New York Times also picked up the article.
04/25/17 – Vox
Article discusses how leaders of the staunchly conservative Freedom Caucus have reportedly endorsed the new amendment to the healthcare bill, but this amendment also would doesn’t do much at all to assuage concerns about the older proposals. “It’s pretty frustrating to see they’ve [the Republicans] worked so hard to come up with another Rube Goldberg–type solution,” says Professor Craig Garthwaite.
04/23/17 – Business Insider
Article explores how consumers perceive the Starbucks brand by examining long-held jokes about the coffee chain, emphasizing that the company needs to figure out how it can appeal to everyone, especially with plans to open 10,000 more locations in five years. “Starbucks was an affordable way to get luxury,” said Professor Craig Garthwaite.
04/20/17 – Vox
Article covers the potential new amendment to the GOP health care bill, which would allow insurers to charge people more while also covering fewer benefits. “It’s pretty frustrating to see they’ve worked so hard to come up with another Rube Goldberg-type solution,” said Professor Craig Garthwaite.
04/19/17 – The New York Times
Article discusses Bill O’Reilly’s firing from Fox News and the impact of boycotts on corporations. The author cites research by Professor Brayden King indicating that boycotts can cause a significant drop in share price, which means that shareholders react to their own fear of what might happen to a brand, rather than what is actually happening to its revenue.
04/18/17 – The New York Times
Article discusses the growing risk of the “bare-market problem,” which is the issue of no insurance carriers showing up in a given area. This will leave government subsidies worthless, and many would end up without insurance. “The regulatory uncertainty is something that is very hard for these people to price in. How do you develop a model for the thoughts of the Trump administration on what they’re going to do policywise in health care?” said Professor Craig Garthwaite.
04/17/17 – Clear Admit
Article profiles a team of three Kellogg students that recently won the Kellogg-Morgan Stanley Sustainable Investing Challenge, an annual competition that brings together teams of business school students to tackle world issues with sustainable investing principles. The Kellogg team, called EduIndia, provided a creative solution to help meet growing demand in India for higher-quality, affordable K-12 private education.
04/02/17 – Fortune
Article by Professor Craig Garthwaite explains how the GOP continues to create uncertainty for insurers, which in turn will create a very real consequence of the political gamesmanship over health care, raising the possibility that insurers will leave the marketplaces altogether.
03/28/17 – Vox
Craig Garthwaite shares insights on what might come next for healthcare marketplaces and the Americans who bought insurance on them.
03/17/17 – CNBC
Article explains what Tom Price, the chairman of House Budget Committee, can and can’t do to roll back regulations from Obamacare, quoting Professor Craig Garthwaite on the ACA requirement that every plan include 10 essential health benefits.
03/16/17 – USA Today
Article examines how advertising costs for prescription drugs are increasing, quoting Professor Amanda Starc on how “Drugmakers don’t care ‘whether it’s a rare, expensive drug or a popular cheap drug’…They’re looking at the marginal return on advertising. A small number of customers spending a lot or a big number spending a little.”