Pete Buttigieg's McKinsey consulting was followed by a premium hike at Blue Cross Blue Shield


Pete Buttigieg has some very presidential explaining to do.
As the South Bend, Indiana, mayor and 2020 Democrat began talking about his consulting work with McKinsey Co., former health insurance executive turned Medicare-for-all advocate Wendell Potter suspected Buttigieg worked with a client that would be "very significant in this campaign." And when Buttigieg's client list came out, Potter's hunch proved true: Buttigieg had worked with Blue Cross Blue Shield of Michigan just before it hiked its insurance premiums and axed nearly 1,000 employees.
Potter first shared his theory in a Monday Twitter thread, saying the health insurance company he'd previously worked for "had McKinsey on retainer," and that the consulting firm was brought in "when one division or another wasn't making enough profit." Buttigieg described his work for BCBS as "identifying savings in administration and overhead costs," which to Potter are "code words" meaning "cutting costs through layoffs, restructuring, and potentially denying health coverage." Buttigieg spent three months with the health insurance provider in 2007 — a year BCBS reported a 27 percent drop in net earnings. That exact loss was mentioned by BCBS exectuives when, two years later, the provider announced layoffs of up to 1,000 workers and double-digit premium increases.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Buttigieg's mysterious work for McKinsey had been a subject of criticism throughout his campaign, especially after a New York Times report showed McKinsey's work with U.S. Immigrations and Customs Enforcement led to severe cuts in detainee care. Buttigieg said he wasn't able to release the details of his work until Tuesday. After speaking with Buttigieg, The Atlantic reported he said he'd worked on "nothing having to do with policy or premium costs" at BCBS. "I don't know what the conclusions were or what it led to," Buttigieg said of his three months at BCBS when asked about the subsequent cuts.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Kathryn is a graduate of Syracuse University, with degrees in magazine journalism and information technology, along with hours to earn another degree after working at SU's independent paper The Daily Orange. She's currently recovering from a horse addiction while living in New York City, and likes to share her extremely dry sense of humor on Twitter.
-
October 13 editorial cartoons
Cartoons Monday's political cartoons include Donald Trump's consolation prize, government workers during shutdown, and more
-
Can Gaza momentum help end the war in Ukraine?
Today's Big Question Zelenskyy’s request for long-range Tomahawk missiles hints at ‘warming relations’ between Ukraine and US
-
The Israeli hostages and Palestinian prisoners being released
The Explainer Triumphant Donald Trump addresses the Israeli parliament as families on both sides of the Gaza war reunite with their loved ones
-
Trump DOJ indicts New York AG Letitia James
Speed Read New York Attorney General Letitia James was indicted as Trump’s Justice Department pursues charges against his political opponents
-
Judge blocks Trump’s Guard deployment in Chicago
Speed Read The president is temporarily blocked from federalizing the Illinois National Guard or deploying any Guard units in the state
-
Trump urges jail for Illinois, Chicago leaders
Speed Read The Texas National Guard begin operations in the Chicago area
-
Bondi stonewalls on Epstein, Comey in Senate face-off
Speed Read Attorney General Pam Bondi denied charges of using the Justice Department in service of Trump’s personal vendettas
-
Court allows Trump’s Texas troops to head to Chicago
Speed Read Trump is ‘using our service members as pawns in his illegal effort to militarize our nation’s cities,’ said Gov. J.B. Pritzker
-
Judge bars Trump’s National Guard moves in Oregon
Speed Read In an emergency hearing, a federal judge blocked President Donald Trump from sending National Guard troops into Portland
-
Museum head ousted after Trump sword gift denial
Speed Read Todd Arrington, who led the Dwight D. Eisenhower Presidential Library and Museum, denied the Trump administration a sword from the collection as a gift for King Charles
-
Trump declares ‘armed conflict’ with drug cartels
speed read This provides a legal justification for recent lethal military strikes on three alleged drug trafficking boats