NITI Aayog Reports Drop in Out-of-Pocket Health Expenditure to 39.4% in 2021-22
New Delhi: Dr. V K Paul, Member (Health) of NITI Aayog, stated that the proportion of out-of-pocket expenses as part of total health expenditure decreased from 64.2% in 2013-14 to 39.4% in 2021-22.
This decline in out-of-pocket expenditure “reflects a very positive indicator,” said Paul, while releasing the Union Health Ministry’s National Health Account (NHA) estimates for India 2020-21 and 2021-22.
“More than Rs 1 lakh crore savings have accrued from the Ayushman Bharat PMJAY and this has had a positive impact on the recent NHA estimates,” he added.
He also stated that other schemes “like the free dialysis scheme, launched in 2015-16 have benefited 25 lakh people”.
While calling the decline in out-of-pocket cost of health, “a good sign”, Union Health Secretary Apurva Chandra said that “a substantial increase has been noticed in the health expenditure of the government”.
This, he said, “reflects the emphasis of the government towards health”.
The NHA estimates for 2021-22 underscore the government's efforts to boost public investment in the health sector.
The share of Government Health Expenditure (GHE) as a percentage of the country’s GDP has risen from 1.13% in 2014-15 to 1.84% in 2021-22.
Similarly, in terms of its share in General Government Expenditure (GGE), it increased from 3.94% in 2014-15 to 6.12% in 2021-22, according to the estimates.
“In per capita terms, GHE has tripled, from Rs. 1,108 to Rs. 3,169 between 2014-15 to 2021-22. The government spending on health between 2019-20 and 2020-21 increased by 16.6 per cent, while between 2020-21 and 2021-22, it grew by an unprecedented rate of 37 per cent,” the estimates showed.
The rise in government health spending has played a significant role in easing the financial burden on households.
According to estimates, between 2014-15 and 2021-22, the share of Government Health Expenditure (GHE) in the country’s Total Health Expenditure (THE) grew from 29% to 48%. During this same period, the share of Out-of-Pocket Expenditure (OOPE) in THE decreased from 62.6% to 39.4%.
Further, the Social Security Expenditure (SSE) on healthcare also increased during this period. This has a direct impact on reducing out-of-pocket payments, the health ministry said.
“The share of SSE on health, which includes Government-funded health insurance, medical reimbursement to Government employees, and social health insurance programs, in THE, has increased from 5.7 per cent in 2014-15 to 8.7 per cent in 2021-22,” as per the estimates.
The current NHA estimate is the eighth and ninth in the series of reports released annually by the Union Ministry of Health and Family Welfare.