India has recorded a decline in out-of-pocket expenditure (OOPE), according to National Health Accounts estimates released by the Ministry of Health and Family Welfare for 2021-22.
Decline in Out-of-Pocket Expenditure (OOPE) on Health
Out-of-Pocket Expenditure (OOPE):
- Out-of-Pocket Expenditure (OOPE) refers to the direct payments made by households when accessing healthcare services.
- It excludes those covered by public or private insurance or social protection schemes.
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- Key Findings:
- OOPE Decline: OOPE reduced to 39.4% of total health expenditure (THE) in 2021-22 from 48.8% in 2017-18.
- Government’s Share Increase: Government’s share in THE rose from 40.8% to 48%.
- Goal: OOPE to be reduced to 35% of THE by 2025-26.
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Reasons for OOPE Decline
- Increased Public Financing: More government funding in healthcare as part of the National Health Policy, 2017 to move towards Universal Health Coverage (UHC).
- Government Schemes:
- Ayushman Bharat Pradhan Mantri Jan Aarogya Yojana (AB-PMJAY) scheme: Boosted healthcare accessibility.
- Private Health Insurance:
- Coverage rose from 5.8% (2017-18) to 7.4% (2021-22).
Government Health Expenditure
- Increase in GDP Share: Government health expenditure rose from 1.35% of GDP (2017-18) to 1.84% (2021-22).
- Target: 2.5% of GDP by 2025.
- Per Capita Health Expenditure: Increased from ₹1,753 to ₹3,169 (2017-18 to 2021-22).
- Slight decrease in social security health expenditure: From 9% (2017-18) to 8.7% (2021-22).
- Includes premiums for Ayushman Bharat and other state-specific health insurance schemes, reimbursements for government employees, etc.
National Health Accounts (NHA)
- The National Health Accounts (NHA) are annual estimates that provide a detailed description of the financial flows in India’s health system.
- The Union Ministry of Health & Family Welfare releases the NHA estimates based on the globally accepted “A System of Health Accounts (SHA), 2011” framework.
- The National Health Systems Resource Centre (NHSRC) publishes the NHA estimates and is designated as the National Health Accounts Technical Secretariat (NHATS).
- Established in 2007, the National Health Systems Resource Centre, a premier Think Tank for MoHFW.
- It is mandated to assist in policy and strategy development in the provision and mobilisation of technical assistance to the states and in capacity building for the Ministry of Health.
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September 30, 2024
