India has significantly reduced out-of-pocket healthcare expenses while increasing government health expenditures over the past seven years, driven by expanded coverage under national health schemes, official data showed on Tuesday.
According to the latest National Health Accounts estimates, out-of-pocket expenditures as a percentage of total health expenditures fell from 62.6 percent in 2014-15 to 39.4 percent in 2021-22.
The Ministry of Health and Family Welfare said that government health expenditure rose from 29 percent to 48 percent of THE over the same period.
The decline in OOPE comes as the Indian government continues efforts to improve access to affordable healthcare through various national initiatives, including free drug and diagnostic services, expanded primary healthcare facilities and universal health coverage programs.
Under the National Free Drugs Service and Free Diagnostic Service, the government has introduced essential medicines and diagnostic facilities to ease the financial burden on patients, particularly in public healthcare institutions.
Additionally, the establishment of 176,000 Ayushman Arogya Mandirs — transformed from sub-health and primary health centers — has expanded primary healthcare access in rural and urban areas, offering a comprehensive range of medical services free of charge.
Expanding Healthcare Coverage and Infrastructure
The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, launched in 2018, provides health coverage of up to ₹5 lakh ($6,000) per family annually for secondary and tertiary care hospitalization.
The scheme aims to benefit approximately 550 million people, representing the economically vulnerable bottom 40 percent of the population. It was recently expanded to cover 6 million senior citizens aged 70 and above, regardless of socio-economic status.
The government has also promoted the availability of quality generic medicines at affordable prices under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana.
Affordable Medicines and Reliable Implants for Treatment pharmacy stores have been set up in select hospitals to provide subsidized medicines and medical implants.
Health infrastructure improvements under the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission, with an outlay of ₹641.8 billion, aim to strengthen primary, secondary and tertiary healthcare services and enhance disease surveillance capabilities.
The MHFW stated that these initiatives have collectively contributed to reducing financial hardship for Indian households seeking medical care.
