Government Health Spending Reduces Medical Burden

Government Health Spending Reduces Citizens’ Medical Financial Burden

Why in the News ?

The National Health Accounts (NHA) Estimates 2022-23 show a major decline in India’s Out-of-Pocket Expenditure (OOPE) on healthcare, alongside rising government health spending. The Union Health Ministry credited this improvement to expanded public healthcare infrastructure and welfare schemes.

Government Health Spending Reduces Medical Burden

Decline In Out-Of-Pocket Health Expenditure:

  • India’s Out-of-Pocket Expenditure (OOPE) in total health expenditure declined from 64.2% in 2013-14 to 43.4% in 2022-23.
  • The reduction indicates improved access to affordable healthcare and reduced financial burden on households.
  • The Ministry highlighted the role of over 1.8 lakh Ayushman Arogya Mandir wellness centres in expanding preventive and curative healthcare services.
  • These centres provide free services including maternal care, treatment of communicable and non-communicable diseases, diagnostics, teleconsultation, and wellness sessions.
  • The report noted that purchase of pharmaceuticals and health supplements still remains a major contributor to OOPE.

Rise In Government Health Spending

  • Government health expenditure as a share of GDP increased from 1.15% in 2013-14 to 1.43% in 2022-23.
  • Health expenditure’s share in total government spending also rose from 3.78% to 4.89% during the same period.
  • Per capita government health expenditure increased nearly 2.7 times, rising from ₹1,042 to ₹2,786.
  • During the COVID-19 pandemic, health spending temporarily rose to 1.84% of GDP in 2021-22 to address emergency healthcare needs.
  • The report also observed growth in social security expenditure and increased use of private health insurance, indicating greater health awareness.

About National Health Accounts And Healthcare Schemes:

●      The National Health Accounts (NHA) estimate health expenditure patterns in India using the System of Health Accounts (2011) framework.

●      The report is prepared by the National Health Accounts Technical Secretariat (NHATS) under the Ministry of Health and Family Welfare.

●      Out-of-Pocket Expenditure (OOPE) refers to direct healthcare spending by households at the time of receiving services.

●      Ayushman Arogya Mandirs are upgraded health and wellness centres providing comprehensive primary healthcare under Ayushman Bharat.

●      Reducing OOPE is important for achieving Universal Health Coverage (UHC) and ensuring equitable access to healthcare services.