The Union Health Ministry recently released the National Health Accounts (NHA) estimates for India for the years 2020-21 and 2021-22. These reports, the eighth and ninth in a series, reveal a positive trend in India's healthcare financing, with a significant reduction in Out-of-Pocket Expenditure (OOPE) for citizens and increased government spending on healthcare. Addressing the occasion, Dr. V K Paul, Member (Health) of NITI Aayog, highlighted that the methodology used in these estimates has evolved over the years, resulting in more accurate and robust data.
A major achievement emphasized in the reports is the decline in OOPE from 64.2% of Total Health Expenditure (THE) in 2013-14 to 39.4% in 2021-22. This is seen as a positive indicator of the government's focus on reducing the financial burden on households. Dr. Paul credited government schemes such as the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PMJAY), which alone has saved citizens over Rs. 1 lakh crore, as a driving force behind the decrease in OOPE. He also mentioned the Free Dialysis scheme, launched in 2015-16, which has benefited around 25 lakh people.
Union Health Secretary Shri Apurva Chandra added that government health expenditure has seen a substantial increase, marking a positive shift in the government's commitment to health. According to the NHA estimates, government health expenditure (GHE) as a share of the country’s Gross Domestic Product (GDP) rose from 1.13% in 2014-15 to 1.84% in 2021-22. This demonstrates a notable rise in public investments aimed at strengthening India's healthcare infrastructure.
The NHA report also shows that the government's expenditure on health has tripled on a per capita basis, increasing from Rs. 1,108 in 2014-15 to Rs. 3,169 in 2021-22. Between 2020-21 and 2021-22 alone, government health spending grew by 37%, showcasing the proactive measures taken during the COVID-19 pandemic. This consistent growth in spending reflects the government's priority of bolstering healthcare for all citizens, which has resulted in financial protection and better access to essential services.
Another critical highlight is the increase in the share of Social Security Expenditure (SSE) on healthcare. SSE, which includes government-funded health insurance, medical reimbursements for government employees, and social health insurance programs, grew from 5.7% of THE in 2014-15 to 8.7% in 2021-22. This growth in social security mechanisms has directly contributed to the reduction of OOPE, preventing households from experiencing financial hardship due to healthcare costs.
The NHA estimates, based on the globally recognized "A System of Health Accounts (SHA), 2011" framework, provide a detailed view of the financial flows in India’s healthcare system, showcasing how money is spent, how healthcare services are provided, and the impact of these trends on the population.
In conclusion, the declining share of OOPE in India’s overall healthcare spending reflects the significant efforts made by the government towards financial protection and Universal Health Coverage. By increasing public health expenditure and strengthening social security mechanisms, the government is steadily advancing towards a more equitable healthcare system.
(Input from various sources)
(Rehash/Ankur Deka/MSM)
