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Decline in Out-of-Pocket Expenditure in Health in India

About OOPE and its Trends

  • It refers to the money people pay directly from their own pockets for medical services, such as doctor visits, medicines, and hospital stays.
  • It excludes those covered by public or private insurance or social protection schemes.
  • Between 2014-2022, the share of Out of Pocket Expenditure (OOPE) in the Total Health Expenditure declined from 62.6% to 39.4%.

Reasons for decline in Out-of-Pocket Expenditure

  • Increased Government Health Expenditure (GHE): Between 2014-15 and 2021-22, the government’s share of health expenditure grew from13% to 1.84% of GDP. (Target – 2.5% of GDP by 2025)
  • Expansion of Social Security Expenditure (SSE): SSE on healthcare, including government-funded health insurance and social health programs, has increased from 5.7% of Total Health Expenditure (THE) in 2014-15 to 8.7% in 2021-22.
  • Growth of Government-Funded Insurance Schemes: Programs like Ayushman Bharat, along with various state-level health insurance schemes, have provided insurance coverage to economically vulnerable populations.
  • Focus on Public Health Infrastructure and Workforce: Increased investment in healthcare infrastructure and workforce development, especially in underserved areas has improved service availability and affordability.
  • Targeted Programs for Non-Communicable Diseases (NCDs): Government programs to manage and prevent NCDs reduced the financial burden on patients.

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