A Battle of the Blues Is Brewing
Total Page：16
File Type：pdf, Size：1020Kb
REAL ESTATE: Home sellers are adding COVID-era amenities to attract buyers. PAGE 3 NOTABLES: Having served their country, these 40 vets are now making an impact in civilian life. PAGE 39 CHICAGOBUSINESS.COM | NOVEMBER 9, 2020 | $3.50 UNDER FORTY THE CLASS OF 2020 PAGE 18 JOHN R. BOEHM R. JOHN JOE CAHILL ON BUSINESS A battle of the With the ‘fair tax’ Blues is brewing vanquished, biz must Antitrust settlement would let health plans compete help find solutions BY STEPHANIE GOLDBERG Care Service Corp., which has he defeat of Gov. J.B. Pritz- been struggling to rev up growth Tker’s graduated income GREG HINZ: Loss forces Health insurance markets are in recent years. e nation’s sec- tax proposal showed that mo- hard choices on nances, about to get something they’ve ond-largest Blues operator—which tivated, mobilized business pensions and corruption. never had before: competition owns Blue Cross plans in Illinois, ALAMY leadership can shape key pol- DAVID GREISING: What among some of the most powerful Montana, New Mexico, Oklahoma The Blue Cross Blue Shield building icy decisions in this state. companies in the business. and Texas—would be free to enter Now business leaders have lessons will Pritzker learn A tentative $2.7 billion settlement markets across the country as a With new opportunities, how- an important decision to from his “fair tax” loss? of an antitrust case would free Blue fully national insurer on par with ever, come potential threats. make. ey can congratulate See PAGE 2 Cross plans to invade each oth- non-Blue rivals like Humana, CVS Just as HCSC would be free to each other on a job well done, er’s markets. Under the deal, the Health and Cigna. e proposed enter the strongholds of other head down to Florida for the Keep in mind that beat- Blue Cross Blue Shield Association settlement also lifts a revenue cap Blues plans, it could encoun- winter and leave Illinois’ con- ing the graduated income agreed to loosen a rule that barred on non-Blue business lines and ter more competition on its own tinuing scal problems to oth- tax didn’t x anything. Illi- such competition. restraints on acquisitions, opening turf. In theory, that could lead ers. Or they can use their new- nois still has $137 billion in at would create big opportu- up new growth pathways for the found political clout to tackle nities for Chicago-based Health insurer. See BLUES on Page 54 those problems. See CAHILL on Page 4 NEWSPAPER l VOL. 43, NO. 45 l COPYRIGHT 2020 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED CHICAGO COMES BACK THE TAKEAWAY Need an antidote to uncertainty? Meet the first A leader in civic tech discusses woman to chair how technology is unlocking the board of opportunities during the Lyric Opera. pandemic. PAGE 4 PAGE 6 2 NOVEMBER 9, 2020 • CRAIN’S CHICAGO BUSINESS Pritzker must stand up—and not just to enemies ne of the earliest, and most they’ll point to the big successes e eect of those failures on the accurate, things I heard his dialed-down manner achieved amendment campaign was brutal. Oabout Gov. J.B. Pritzker is in his rst two years. e governor With visions of crooked Springeld that while he certainly has beliefs got just about everything he wanted dancing in their heads, voters were GREG HINZ and principles and is prepared to from the General Assembly. And easy prey to the argument that ON POLITICS work to enact them, he tempera- though his health-rst approach Springeld couldn’t be trusted with mentally is a nice guy, someone to curbing COVID has been more more tax money, even tax money who would much prefer to work contentious, I think the gover- from rich people spending millions things out than engage in messy nor’s approach of talking quietly to protect their pocketbooks. reporter’s question, he signaled whatever his virtues, the longtime public spats. while carrying a big stick has been Now the governor will have to that Madigan ought to resign his speaker and state Democratic chair Maybe it’s time the governor sent eective. choose between raising other taxes, party leadership position. But it now is toxic. Pritzker needs to as his nice-guy persona on vacation. But things played out dierent- on the middle class in the middle was hardly a call to arms. And if well, lest he suer the same fate as After the loss of his agship ly with the “fair tax” battle. e of a pandemic, imposing harsh Pritzker lets Madigan continue to Illinois Supreme Court Justice Tom graduated income tax amendment, measure was defeated because budget cuts, or punting and hoping play him, nothing ever will change Kilbride, who lost his retention race Pritzker is in for the ght of his life, Pritzker failed to confront Spring- Washington will come to the rescue in Springeld—unless someone is amid ads dubbing him “Madigan’s eld corruption and with a major COVID-relief bill. All indicted. Consider that, in the wake favorite judge.” THE GOVERNOR IS IN FOR THE FIGHT cronyism. He still won’t carry political and economic risks. of the election, a Democratic-run “We have to address this,” Pritz- call out House Speaker e governor can reduce those special House panel once again in- ker said right after the election, OF HIS LIFE, AND IT WILL BE NASTY. Michael Madigan, he risks by demanding that employee denitely postponed plans to hold referring to the state’s precarious still won’t demand groups do their share—there’s still a hearing on the ComEd scandal. nances. “is is the most import- and it will be as nasty as a kning ethical reforms that should have that plan to repeal the Illinois Con- e excuse: COVID. But isn’t it ant thing we can do.” in an alley. At risk is his agenda, his been enacted months ago, and stitution’s pension clause that he convenient that no hearing will be He’s right. Now please, sir, do it. re-election and the future of the he still won’t squeeze employee could get behind—and by demand- held until after Madigan lines up at means dealing with the two el- state. Winning the ght is going to unions that are happy to take overly ing Madigan begin his exit. the votes to get himself re-elected ephants in the room: Madigan and mean standing up—and not just to rich pensions until the end of time Pritzker took a small step in speaker? pensions. If you don’t, you could his enemies. instead of coming to the table and the right direction days after the Madigan’s caucus is beginning nd an elephant in your oce in Now, if you talk to Pritzker & Co., giving something back. election when, in response to a to wake up to the reality that, two years. e next test ahead for the governor .B. Pritzker campaigned for Never mind the mystical, manip- notch above junk status, and ratings governor two years ago on the ulative powers of the “billionaires” agency Moody’s on Nov. 4 warned Jstrength of his proposal for a whom Pritzker villainized at the that the vote against the tax could graduated “fair tax” to replace Illi- press conference. Voters could have negative implications for the DAVID GREISING nois’ at-tax structure. He won with see on their own that the state’s state’s credit rating. 55 percent of the vote. scal pressures would provide It was reassuring to hear Pritzker ON GOVERNMENT His proposal—touted as a tax strong incentive for raising taxes say he is determined to avoid a hike aecting only the top 3 percent at ever-lower income levels. And downgrade. Last spring, the Legisla- of the state’s income earners—went by targeting narrower numbers of ture gave him authority to sell bonds Juliana Stratton threatened a 20 with voters. e biggest test of his before voters Nov. 3. Fifty-ve per- voters, the political cost would be to cover state operating expenses if percent income tax increase hike leadership as governor—how he cent voted against it. less than under the current system the “fair tax”—and its projected $3.4 during the campaign; Pritzker has responds in the aftermath of this It was a crushing turnabout for in which all voters are aected by a billion in annual net new revenue— talked about 15 percent budget cuts, major setback—is coming in the a rst-time elected ocial. Among tax increase. failed to pass. too. ose cuts are overdue, and weeks ahead. the questions now: What lessons Pritzker singled out a “lie” that Issuing those bonds likely would with the loss on the amendment does Pritzker draw from his rst passage of the graduated tax plunge Illinois’ credit to junk status, behind him, Pritzker will have new Crain’s contributor big loss, and what does he do in amendment would lead to taxation and Pritzker would be wise to resist incentive to nd them. David Greising is response? of retirement income—currently the temptation for a bond issue or e governor has every right to president of the Pritzker’s initial comments, at a tax-exempt under Illinois law. But it any other gimmicks. be disappointed, even angry, that investigative watch- press conference the day after the was State Treasurer Mike Frerichs, We can expect a tax hike: Lt. Gov. his most notable proposal failed dog Better Government Association. election, signaled his frustration a Democrat, who put the issue at over the failure of his cornerstone the center of the debate.