Listen to Story India has experienced a reduction in out-of-pocket expenditure as a share of total health expenditure, dropping from 64.2% in 2013-14 to 39.4% in 2021-22, signalling a positive trend according to the National Health Accounts Estimates for 2020-21 and 2021-22, released by the Health Ministry on Wednesday.
Out-of-pocket expenditure refers to the direct payments made by individuals for healthcare services at the time of treatment, which are not covered by insurance or any other financial protection schemes. This includes costs for doctor visits, medications, hospital stays, diagnostics, and other medical services. In countries with high out-of-pocket expenditures , individuals bear a larger financial burden for their healthcare needs, which can lead to significant economic strain and may prevent people from seeking necessary medical care.
A decline in this area, as seen in India's health expenditure reports, indicates that government schemes and health insurance are covering a larger portion of medical costs. The report also highlighted that the share of government health expenditure in the country's Gross Domestic Product (GDP) rose from 1.13% in 2014-15 to 1.
84% in 2021-22. Additionally, the government's contribution to total health expenditure increased from 29% in 2014-15 to 48% in 2021-22. The NHA reports provide a comprehensive breakdown of financial flows in India’s health system, including the source of funds, how money is spent, and the nature of healt.
