National Health Accounts reveal high out-of-pocket health expenditure burden on citizens
The National Health Accounts (NHA) Estimates for India 2022-23 indicate that households still bear nearly half of the current health expenditure (OOPE), despite increased government and insurance spending. While the government claims a rise in its health expenditure as a percentage of GDP, experts like Abhay Shukla point out that public financing has dropped back to pre-COVID levels, with GHE as a share of CHE sharply declining. Private health insurance expenditures are three times higher than government-financed schemes, suggesting PMJAY and similar programs fail to provide substantial protection. The health system remains deeply privatized, leading to inequities and high costs, with a low focus on preventive care.
Key Points
- Out-of-pocket expenditure (OOPE) constitutes nearly half of India's current health expenditure, placing a significant burden on households.
- Despite government claims of increased public health spending, the share of Government Health Expenditure (GHE) in Current Health Expenditure (CHE) has declined sharply post-COVID.
- Private health insurance spending significantly outweighs government-financed schemes, indicating inadequate financial protection for citizens.
- India's health system remains heavily privatized, contributing to inequities in access and high treatment costs.
- A worrisome aspect is the relatively low spending on preventive care, which accounts for only 8.88% of the CHE.
Exam Facts
- National Health Accounts (NHA) Estimates for India 2022-23 are the source of data.
- Out-of-pocket expenditure (OOPE) is nearly 49.90% of Current Health Expenditure (CHE).
- Government Health Expenditure (GHE) as a percentage of GDP rose from 1.15% in 2013-14 to 1.43% in 2022-23.
- GHE as a share of CHE dropped from 41.1% in 2021-22 to 35.6% in 2022-23.
- Preventive care forms only 8.88% of the CHE spending.
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