Out-of-pocket health spend falls, govt spend rises in NHA 2021-22

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

• 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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