On
the Money Trail ~~~~~~~~~~~~~~~~~~~~~~ Pulling the Plug
on Grandma
by
Al Jacobs, author of Nobody's Fool: A Skeptic's
Guide to Prosperity
September
2009
At a town hall meeting in Portsmouth, New Hampshire,
on August 11, 2009, in response to a question from 11-year-old
schoolgirl Julia Hall of Malden, Massachusetts, on the matter of
healthcare, President Obama made the following statement: “The
rumor that has been circulating a lot is the idea that somehow
the House of Representatives voted for death panels that will
basically pull the plug on grandma. I am not in favor of that.”
It’s reassuring to know the nation’s chief executive
disavows any intention to deprive the elderly of the care
required to keep them percolating on into eternity. Let’s now
take a realistic look at how grandma will fare under the health
program the president referred to, HR3200 approved by the House
Ways and Means Committee July 17 on a 23-to-18 mostly party line
vote.
A fundamental requirement of the legislation is that
everyone in the nation must be insured in some way and no one
can be denied coverage because of a pre-existing condition.
It’s true those currently insured will be permitted to retain
their policies, but if a private for-profit plan cannot compete
with the government’s subsidized program, it may well be driven
out of business. Those persons unable to pay an insurance
premium will receive coverage, compliments of the taxpayer. The
plan also specifies large employers who do not provide coverage
for their employees will pay a penalty, with smaller employers
assessed on a sliding scale. Another provision in the bill
includes establishment of community health centers designed, in
some vague way, to encourage healthy lifestyles. As to where
the trillions for all this will come from, we’re to believe that
increased governmental efficiency and more taxes on the rich
will somehow do the job.
Despite differences in opinion as to whether the plan
is economically viable, or even desirable, one thing is
perfectly clear: If the program is to deliver even a portion of
what it promises, its cost must go through the roof. Short of
the federal government simply printing money at an ever
increasing rate—the sort of operation which resulted in the
economic collapse of Germany’s Weimar Republic in 1923—there
will never be enough dollars to fulfill the promises. This gets
us down to a fundamental question: With an aging population,
many with limited resources, and an increasingly complex and
costly medical establishment, can we as a nation afford to
provide even marginal health care to every American citizen—and
possibly every non-citizen as well?
Perhaps it’s time to think about the unthinkable: Is
there any circumstance when grandma’s plug should be pulled?
Before I address this question, I’ll offer a couple of
third-hand testimonials for your consideration. The first
concerns an 82-year-old woman who in 1993 suffered a stroke
leaving her largely paralyzed. With the help of a shrewd
attorney and the twisting of a few rules and regulations, this
woman’s assets found themselves transferred into a trust for her
husband, and for the next 11¾ years she remained hospitalized on
breathing and feeding tubes, mostly unable to move or speak,
entirely paid for by Medicaid. In another instance, in 1995, a
feeding tube was inserted into a hopelessly senile 98-year-old
woman, billed to Medicare and supplemental insurance, with no
meaningful consent by any family member. If left up to the
hospital personnel who ordered the insertion, the patient and
tube would likely have remained in place as long as remuneration
continued to flow in.
I’ll now address my question: Is there any
circumstance when grandma’s plug should be pulled? Let’s take
this out of the realm of ethics and morality by changing the
word should to will: Is there any circumstance
when grandma’s plug will be pulled? This now becomes a matter
of hard, cold reality. Consider the instance where an
87-year-old grandmother with advanced Alzheimer’s is being kept
alive in an institution, thanks only to the 24-hour care
received, at a cost of $20,000 monthly. As long as the expense
continues to be picked up by a governmental agency or an
insurance company, most families will be perfectly willing to
let Granny live on in perpetuity. However, if her care becomes
a financial responsibility of the family, attitudes will rapidly
change. In this case you’ll most likely look long and hard to
find a willing family member to pick up the tab. With cash flow
at an end, the 24-hour care becomes a thing of the past, and
Granny will quickly succumb to her ailments.
The public dispute rages on, with the current
controversy now centered on the benefits and drawbacks of
private versus government-run healthcare. Understandably,
America’s aged citizens favor the status quo, claiming to oppose
socialized medicine as they receive preferential treatment
through Medicare at the expense of the general public. I’ve
seen no finer illustration of this incongruity than an August 20
cartoon by Mike Smith of King Features. It depicts an elderly
man saying to his doctor: “What this country doesn’t need is
government-run health care.” The physician replies: “So, shall
I send my bill to you or to Medicare?”
à
à
à
Al Jacobs has been an entrepreneur for forty years. His business
experience ranges from property management and securities
investment to appraisal, civil engineering, and the operation of
a private trust company. In his book, Nobody's
Fool - A Skeptic's Guide to Prosperity, Al presents his
Ten Ground Rules for Success for achieving wealth and a
prosperous life by outlining a philosophy for spending,
borrowing, making sound investments, and how to avoid being
victimized by America's many intimidating institutions.
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