Significant Reduction in India's Out-of-Pocket Healthcare Spending, New Data Reveals
India's out-of-pocket healthcare spending drops significantly, govt data shows
Image: The Economic Times
India's out-of-pocket healthcare expenditure has decreased to 43.4% of total health spending in 2022-23, down from 64.2% in 2013-14. This decline is attributed to increased government spending on public health, which has risen significantly over the past decade.
- 01Out-of-pocket expenditure (OOPE) fell by nearly 21 percentage points from 2013-14 to 2022-23.
- 02Government Health Expenditure (GHE) as a share of GDP increased from 1.15% to 1.43% during the same period.
- 03Per capita government health spending grew from ₹1,042 to ₹2,786 over the decade.
- 04Government's share of total health expenditure rose from 28.6% in 2013-14 to 43.7% in 2022-23.
- 05Social Security Expenditure increased from 6% to 9.9% of total health expenditure between 2013-14 and 2022-23.
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According to the National Health Accounts (NHA) estimates released by the Union Health Ministry, India's out-of-pocket healthcare expenditure has significantly decreased, falling to 43.4% of total health spending in 2022-23 from 64.2% in 2013-14. This nearly 21 percentage point drop is largely due to increased government investment in public health, with Government Health Expenditure (GHE) as a share of GDP rising from 1.15% to 1.43% over the same period. Per capita government health spending has also seen substantial growth, increasing 2.7 times from ₹1,042 to ₹2,786. Furthermore, the government's share of total health expenditure has crossed 43.7%, indicating a stronger financial safety net for health services. The report highlights the positive impact of various health schemes aimed at reducing the financial burden on households, as well as the growth in social security and private health insurance coverage.
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The reduction in out-of-pocket healthcare costs is likely to enhance access to medical services for Indian families, easing financial burdens.
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