National Health Accounts figures indicate high burden of health care costs on people, Pg14

Key Highlights:

• As per the National Health Accounts (NHA) Estimates for India 2022-23, out-of-pocket expenditure (OOPE) constitutes nearly half of the current health expenditure.
• Government Health Expenditure (GHE) as a percentage of GDP rose from 1.15% in 2013-14 to 1.43% in 2022-23.
• Households contribute 56.44% of health spends on Current Health Expenditure (CHE), with out of pocket expenditure accounting for 49.90% of CHE.
• Private hospitals account for the largest share of CHE at 30.83%, followed by government hospitals at 16.73%.

Detailed Insights:

• Despite increased government spending, India falls short of the WHO recommendation to dedicate at least 5% of GDP to public health and the National Health Policy recommendation of 2.5% of GDP combined Central and State government health spend.
• Government Health Expenditure (GHE) as a share of Current Health Expenditure (CHE) sharply dropped from 41.1% in 2021-22 to 35.6% in 2022-23, indicating a reversal to pre-COVID levels.
• Government-financed health insurance schemes constitute a meager 3% of India’s Total Health Expenditure (THE), while private health insurance expenditures are three times higher.
• Low spending on preventive care, which forms only 8.88% of the CHE spending, remains a worrisome aspect of India's health expenditure.

Key Concepts Involved:

• Out-of-Pocket Expenditure (OOPE): Direct payments made by individuals at the point of receiving healthcare.
• Government Health Expenditure (GHE): The amount the government spends on healthcare, including capital expenditure.
• Current Health Expenditure (CHE): Measures the final consumption of healthcare goods and services, excluding capital expenditure.