The latest available data of the National Health Accounts (NHA) for the year 2021-22 is somewhat promising for the Indian health scenario: Out-of-Pocket Expenditure on healthcare is decreasing due to increased government investment in health services and qualitative upgradations in public health infrastructure. GHE has increased from 2014-15 to 2021-22 from 1.13% to 1.84% of GDP and from 3.94% to 6.12% of total government spending. With more funding, the government is also in a position to make healthcare more accessible and affordable. On the demand side, therefore, this translates directly into easing the financial burden on the individual who would previously pay a large share of health-care costs out-of-pocket.
Government response to the COVID-19 pandemic has been critical in strengthening the healthcare system by investing simultaneously on direct health needs and addressing long-term challenges such as NCDs. Programs such as Ayushman Bharat and multiple initiatives at the state level for health insurance have increased coverage for the most economically vulnerable groups of people, further reducing OOPE so that more families can undertake medical treatment without the fear of financial catastrophe.
This increase in government health expenditure has correspondingly increased per capita health expenditure, with this increasing threefold from ₹1,108 in 2014-15 to ₹3,169 in 2021-22. Overall increases have been accompanied by rising social security expenditure, from 5.7% of THE in 2014-15 to 8.7% in 2021-22, which also serves as a means of providing support to citizens as a collective cushion against potentially catastrophic health expenditures.
Improvements in the public health infrastructure, particularly in rural areas, and increased training of the healthcare workforce have also made health care more affordable and accessible. By enhancing access to and quality of facilities for health care, the government is ensuring that even the most underserved communities obtain the medical services they require without the heavy financial burden previously associated with health care.
This reduction in out-of-pocket expenditure is over and above immediate relief from a financial point of view; it is changing the face of the healthcare system in India into a more inclusive and equitable one. Increased access to health services would motivate people to seek medical care in time, thus improving health outcomes and reducing the severity of illness. With families spending less on healthcare and consequently being financially better off, they can improve other aspects of their lives, such as education and nutrition.
After all this is just a reflection of India’s gradual march toward universal health coverage. By giving importance to public health funding, the government is sowing seeds for a future where healthcare will not be a privilege but a human right and thereby nudging closer to an effective resilient healthcare system that can strengthen the population toward a healthier, economically stable population for years to come.