NEW DELHI: Out-of-Pocket Expenditure (OOPE) on healthcare, defined as the costs borne directly by individuals at the point of receiving medical services, remains a crucial concern in India’s healthcare system. According to the National Health Accounts (NHA), OOPE covers a wide range of expenses, including inpatient and outpatient care, childbirth, immunisation, family planning devices, transportation, and over-the-counter medicines. However, the government has emphasised that efforts to reduce this burden are showing positive results.
In response to a question in the Lok Sabha by Shafi Parambil, Health Minister Jagat Prakash Nadda stated that OOPE as a percentage of Total Health Expenditure (THE) has seen a consistent decline from 62.6 per cent in 2014-15 to 39.4 per cent in 2021-22. This reduction has been attributed to a significant increase in Government Health Expenditure (GHE), which rose from 29 per cent to 48 per cent of THE over the same period.
The government has implemented various initiatives to curb OOPE and improve healthcare affordability. The National Health Mission (NHM) has prioritised universal health coverage by providing financial and technical assistance to states for strengthening healthcare infrastructure and services. The introduction of the National Free Drugs Service Initiative and the National Free Diagnostic Service has further eased the financial strain on patients by ensuring access to essential medicines and diagnostic facilities at no cost.
Besides, under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP), over 2,000 generic medicines and 300 surgical items are available at subsidised rates through Jan Aushadi Kendras. The Affordable Medicines and Reliable Implants for Treatment (AMRIT) initiative also provides affordable medicines, including cancer drugs, with 222 AMRIT pharmacies currently operational across 29 states and union territories.
A step towards reducing healthcare expenses has been the implementation of Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), which offers an annual health cover of Rs 5 lakh per family for secondary and tertiary care hospitalisation. This scheme covers approximately 55 crore beneficiaries from the economically vulnerable sections of society. The government has recently expanded AB-PMJAY to include six crore senior citizens aged 70 and above under the Vay Vandana Card scheme, irrespective of their socio-economic status.
