In financial planning, we first look at client goals and then review whether the client’s actions are congruent with those goals. A step in the process is to break down spending – how much is going for needs, how much for wants, and how much is wasted. We can then get a true picture of what changes need to be made.  The same goes for health care. We are attempting changes from the top down. Figure out the waste, the non-vital services, and the true needs of our health care system. Another effective path is to make changes from the bottom up. If we all do our part, incredible change can happen. The health care system in this country is everyone’s responsibility.  Along with taking care of our health while we can, each of us needs to address our end of life decisions and care. I discussed this in my last two posts and promise this is my last on this topic for a while. End of life conversations are hard. Familiarity breeds comfort, and talking about end of life openly, honestly, and often, will improve how we deal with this guaranteed outcome of birth.  Now I get to the dollars spent at the end of life. In this wonderful country, we have the right to make our decisions regarding health care. And to make the situation more empowering, if we have any insurance, public or private, we don’t have to pay for those decisions directly. It is like going to a buffet in Las Vegas. You pick as much of anything you want, and pay one price. And maybe in the end, you’ll win a jackpot. We know the consequence of this. If no one has to see the bill for treatment, then costs are not considered. This is a big reason why we spend so much money in the last days of life.  Let’s explore an all too familiar situation. “Paw-Paw” is 92, has four children, and many grandchildren. He lives independently, and has lived a great life. Since he is from Wisconsin, he doesn’t talk much so of course he hasn’t shared his end of life wishes with his family.  One day, Paw-Paw’s son finds him sprawled on the floor, still breathing, but unresponsive. At the hospital, the doctors determine he has had a major stroke. They are keeping him alive with life support and providing “full court press” intensive care.  Family flies in from all over the country. What should they do? There are mixed emotions. The doctors say the situation is bleak. If he survives, he will most likely be bed bound, uncommunicative, and will require a feeding tube surgically placed in his stomach. Despite the odds, some of the family members insist on “doing everything.” They are not ready to let Paw-Paw go and hope for the miracle. After a month in the ICU, despite all the best care and equipment, he develops a severe infection and dies. Cost of treatment? Estimates vary, but the bill will most likely be in the $300,000+ range. Money spent unwisely, producing little to no benefit.  Who pays the bill? All of us – through Medicare. As discussed in a previous post, each taxpayer already pays $3,660 of the $7,960 of health care costs per person in this country. Are we getting the most for our taxpayer dollars by keeping Paw-Paw alive? Is it better to spend $300,000 to keep him alive for 30 days, or use that $300,000 to pay for basic preventive and acute care that can save many more years of life? Who should decide how taxpayer’s money is spent? These are hard questions we need to answer. One of the few things England has done right with their health care system is come to a consensus on what care should be paid for with taxpayer dollars. We could learn from this. And the beauty of our great democracy – if Paw-Paw’s family wants to pay for the miracle, that is fine and we should support that decision.  How does the Affordable Care Act address end of life issues? The law originally provided funding for education on end of life issues. Under attack by the death panel squad, this provision was removed. Physicians can still educate patients on end of life care, they just don’t get paid specifically for that education. And throughout the law, any attempt at cutting costs or rationing is emphatically not allowed.  What can we do in the meantime and what needs to happen in the future?
How should we use taxpayer's money for health care? One big expense is end of life. Are we using that money wisely?