Context:
The latest National Health Accounts figures show that despite some increase in government health spending, Indian households still bear a high burden of healthcare costs. Out-of-pocket expenditure remains nearly half of current health expenditure, raising concerns over financial protection and healthcare equity.
- National Health Accounts (NHA) estimate how health expenditure flows in India across government, households, insurance and private providers.
- Current Health Expenditure (CHE) refers to spending on healthcare goods and services, excluding capital expenditure.
- Government Health Expenditure (GHE) has increased, but it remains below the National Health Policy target of 2.5% of GDP.
- Out-of-pocket expenditure (OOPE) means direct spending by households on treatment, medicines, diagnostics and hospitalisation.
- High OOPE can push families into poverty, debt and delayed treatment.
- Private hospitals and household payments still form a major part of India’s health financing.
- Government schemes like PM-JAY aim to reduce catastrophic health expenditure but insurance coverage remains limited.
- Low spending on preventive care is a concern, especially with rising non-communicable diseases.
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