Public-Private Interface News

Former Secretary of the Treasury Larry Summers in conversation with Prof. Janice Eberly

Lawrence Summers

Larry Summers delivers the Susan Bies Lecture on Economics and Public Policy

The former Secretary of the Treasury spoke with Kellogg’s Janice Eberly

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How do you pay for pre-existing conditions? The GOP plans to charge more

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.

With Anthem-Cigna All But Dead, M&A Speculation Is Back On

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.

Amazon’s moves beyond retail get Wall Street thumbs up, for now

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., Business Insider, and The New York Times also picked up the article.

Republicans’ new health amendment lets insurers charge sick people more, cover less

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.

Starbucks is entering a new era — and 4 jokes reveal the biggest problems haunting its business

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.

House GOP members are floating a new health plan. Here’s what’s in it

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.

Bill O’Reilly and the Upside of Corporate Cowardice

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.

Bare Market: What Happens if Places Have No Obamacare Insurers?

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.

Kellogg EduIndia Team Wins Kellogg-Morgan Stanley Sustainable Investing Challenge

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.

Why It’s Still Trump’s Fault if Obamacare Fails

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.

If Trump sabotages Obamacare, rural America will suffer the most

03/28/17 – Vox
Craig Garthwaite shares insights on what might come next for healthcare marketplaces and the Americans who bought insurance on them.

Retirement dreams fizzle for some with 'Obamacare' repeal

03/22/17 – Associated Press
Article explains how the Republican proposal would allow insurers to charge older customers five times as much as younger ones, while cutting the size of tax credits for many, quoting Professor Craig Garthwaite on how the combination of those two factors is going to result in a meaningful increase in costs. Also covered in The Wall Street Journal, The Washington Post, Chicago Tribune,, US News & World Report, Business Insider, and New York Times.

Here's what the White House can do to dismantle Obamacare even if Congress doesn't go along

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.

Prescription drug costs are up; So are TV ads promoting them

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.”

Republican Health Care Reform Bill Struggling

03/15/17 – Chicago Tonight (WTTW)
Professor Amanda Starc discusses the repeal-and-replace effort on Chicago Tonight.

Republican health plan to make millions more uninsured: U.S. congressional report

03/13/17 – Reuters
Article discusses how according to the nonpartisan U.S. Congressional Budget Office, 14 million Americans would lose medical insurance by next year under a Republican plan to dismantle Obamacare, quoting Professor Craig Garthwaite who explains that the CBO estimates are only making it harder for Republicans to sell their proposal. Craig also discussed this topic on CLTV – Politics Tonight and Bloomberg.

Why Nike’s ‘Pro Hijab’ Is More Than Just Politics

03/11/17 – Fortune
Article by Associate Dean for Leadership Development Bernard Banks explains that Nike’s ‘Pro Hijab’ campaign should not be viewed as a political statement following Trump’s immigration ban, but rather as a business move to reach new female consumers in the Middle East.

Why the GOP Healthcare Bill Is a Giant Step Backward

03/07/17 – Fortune
Article by Professor Craig Garthwaite discusses the three “legs” of the insurance market and why the GOP healthcare bill falls short because it refuses to acknowledge the reality of the health markets it faces.