Charlie Munger Called Healthcare Industry 'Deeply Immoral' And A 'Disgrace' – Claiming Providers Artificially Prolong Death To Make More Money

The late Charlie Munger, who passed away at the age of 99, was deeply alarmed by the state of the U.S. health care system. As the former vice chairman of Berkshire Hathaway and a respected billionaire investor, Munger was vocal in his criticism of the health care industry. He described the system as "shot through with rampant waste" and "deeply immoral" in a Squawk Box interview in 2018.

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Munger stated, "A lot of the medical care we do deliver is wrong – so expensive and wrong. It's ridiculous." He went even further, claiming, "A lot of our medical providers are artificially prolonging death so they can make more money." 

While Munger expressed strong claims and personal views, it’s important to recognize that end-of-life decisions are typically made through a close partnership between the family, physicians, and other health care professionals involved in the patient’s care.

The billionaire investor was particularly critical of the high costs associated with health care in the United States. He called the U.S. health care cost a "disgrace," pointing out that countries like Singapore provide better care at 20% of the cost. Munger emphasized the need for better cost management, criticizing the industry for being "out of control" and failing to handle medication expenses effectively.

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According to a Commonwealth Fund report, the United States ranks last among comparable countries in terms of health care affordability. This poor ranking is reflected in several alarming statistics within the report:

• Half of working-age Americans (51%) struggle to afford their health care.
• About one-third (32%) of Americans are burdened with medical debt.
• Nearly two of five (38%) working-age adults reported delaying or forgoing needed health care due to costs.
• More than half (57%) of those who delayed or forwent care due to affordability concerns experienced worsening health problems as a result.

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The U.S. health care system has faced significant challenges for years despite its high spending. In 2021, the U.S. spent 17.8% of its GDP on health care, nearly double the average of other high-income countries. Yet, it has some of the worst health outcomes. Life expectancy in the U.S. was 77 years in 2020, three years below the average for developed countries, and provisional data suggests a further decline in 2021. The U.S. also has the highest rate of avoidable deaths, with preventable deaths rising since 2015.

During the interview, Munger also noted the failure of efforts to fix the health care system. He referenced a venture by Berkshire Hathaway, Amazon, and JPMorgan Chase that aimed to address health care issues but ultimately failed to achieve its objectives. 

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Other notable health care reform efforts have also faced challenges. For instance, the Affordable Care Act, while expanding coverage to millions of Americans, has not fully addressed the issues of rising health care costs and underinsurance. Proposals for a single-payer health care system, such as "Medicare for All," have gained attention but remain contentious topics in political debates.

Despite the grim outlook, Munger suggested that a universal health care system with an opt-out option could be a reasonable solution. He predicted that when Democrats gain control of all three branches of government, there would be a push for a single-payer health care system due to the severity of the current issues. As of 2024, Democrats control the executive and Senate, while Republicans control the House of Representatives.

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