The Death Panels will be a la Canada where they would not only not treat the child they would not let anyone else treat him either.
I think similar things have happened in the UK. That is a death panel. They have decided you should die not that they will not treat you.
Not paying for your treatment is a valid option for the government or insurance company although it may be breach of contract. In the case of Medicare since the government forces you to be on it there might be a case to be made.
What they wanted was for the Government to pay for it so they wouldn't have to.
A lot of the people who rail about "death panels" don't seem to grasp this distinction.
It's a "death panel" only when you are told you can't have a particular treatment even if you pay for it yourself.
Failing to fund costly services on the taxpayer's dime is just good conservative budgeting.