Analyzing the Decline in India's Out-of-Pocket Health Expenditure: Data Reliability and Rising Healthcare Costs
National Health Account (NHA) estimates suggest a significant decline in India's Out-of-Pocket Expenditure (OOPE) from 64% in 2013-14 to 39% in 2021-22. While the government credits policy interventions for this trend, analysts argue the decline might be an artifact of data limitations in the NSS 75th round survey. Alternative data from the CMIE-CPHS suggests that OOPE as a share of household consumption is actually rising. The article calls for a more cautious interpretation of NHA data and the use of multiple survey bases to reflect the true financial burden on households facing skyrocketing medical prices.
Key Points
- OOPE is the primary source of financing for healthcare in India, often leading to household poverty.
- NHA estimates are based on the NSS 75th round, which some experts find unrealistic compared to other surveys.
- Rising medical prices and hospital utilization rates suggest that healthcare is becoming more expensive, not less.
- The share of household budget going toward health has increased from 5.5% to 7.1% in urban areas according to CES data.
Exam Facts
- OOPE fell from 64% (2013-14) to 39% (2021-22) per NHA estimates.
- NSS: National Sample Survey (75th round used for NHA).
- CMIE-CPHS: Centre for Monitoring Indian Economy - Consumer Pyramids Household Survey.
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