Government Health Expenditure in India Surges, Reducing Out-of-Pocket Costs
New Delhi, November 10, 2024 - The Indian government has announced a significant reduction in out-of-pocket expenditure (OOPE) on health by the public, attributing this to increased governmental investment and enhancements in the public healthcare system.
According to the National Health Accounts (NHA) data for 2021-22, there has been a notable increase in government health expenditure (GHE) from 1.13% of GDP in 2014-15 to 1.84% in 2021-22. Furthermore, GHE's share of total government spending has risen from 3.94% to 6.12% over the same period. This increased investment has also seen per capita health spending triple, from Rs 1,108 to Rs 3,169, as reported by the Ministry of Health and Family Welfare.
"This increase in expenditure has enabled the government to bolster public healthcare infrastructure, enhancing affordability and accessibility of services, which in turn directly reduces the financial burden on individuals," the Ministry stated.
OOPE refers to direct payments made by individuals for healthcare services, including consultations, medications, and hospital stays. The government highlighted that social security expenditure on healthcare, which includes government-funded health insurance and social health programs, has increased from 5.7% of total health expenditure in 2014-15 to 8.7% in 2021-22.
"This expansion helps shield citizens from catastrophic health expenses, thereby lowering OOPE," the statement continued. Programs such as Ayushman Bharat and various state-level health insurance schemes have been instrumental in providing insurance coverage to economically vulnerable groups, reducing their dependency on personal funds for healthcare.
The government noted that the decrease in OOPE not only makes healthcare more affordable but also encourages more people, particularly in rural areas, to seek medical attention without financial distress. This shift promotes equitable access to healthcare across different socio-economic groups.
"By reducing OOPE, we are enabling our public healthcare system to serve a larger population, distributing healthcare resources more fairly, and strengthening the system to meet growing demands," the government concluded.
This trend towards reduced OOPE and increased public healthcare funding is part of India's broader objective to achieve universal health coverage, moving towards a healthcare system where access is considered a right, not a luxury.