Out-of-pocket health expenditure declined to 39.4pc in 2021-22: NITI Aayog

The share of out-of-pocket expenditure out of total health expenditure has come down from 64.2 per cent in 2013-14 to 39.4 per cent in 2021-22, said Dr. V K Paul, Member (Health), NITI Aayog.

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”.

Further, the NHA estimates for 2021-22 highlight the efforts of the government to increase public investments in the health sector.

The share of Government Health Expenditure (GHE) in the overall GDP of the country has increased from 1.13 per cent in 2014-15 to 1.84 per cent in 2021-22.

In terms of share in the General Government Expenditure (GGE), it has increased from 3.94 per cent in 2014-15 to 6.12 per cent in 2021-22, the estimates showed.

“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 increase in Government spending on health has an important implication for the reduction of financial hardship endured by households.

In the Total Health Expenditure (THE) of the country between 2014-15 and 2021-22, the share of GHE has increased from 29 per cent to 48 per cent. During the same period, the share of Out-of-Pocket Expenditure (OOPE) in THE declined from 62.6 per cent to 39.4 per cent, the estimates showed.

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.