Out-of-Pocket Expenditure

The Government of India has successfully implemented various initiatives to reduce healthcare costs, leading to a substantial decline in Out-of-Pocket Expenditure (OOPE) as a percentage of Total Health Expenditure (THE). As per the National Health Accounts (NHA) Estimates, OOPE has reduced from 62.6% in 2014-15 to 39.4% in 2021-22, reflecting the impact of progressive healthcare policies.

At the same time, Government Health Expenditure (GHE) has seen a significant rise, increasing from 29.0% of THE in 2014-15 to 48.0% in 2021-22. The Ministry of Health and Family Welfare continues to implement key national programs to make healthcare services more accessible, affordable, and efficient.


Key Initiatives Driving Healthcare Affordability

One of the flagship programs under this initiative is the National Health Mission (NHM), which has played a vital role in expanding universal health coverage. The NHM supports state governments in enhancing healthcare infrastructure, deploying adequate medical personnel, and ensuring the availability of essential medicines and diagnostics through the National Free Drugs Service initiative and Free Diagnostic Service.

The government has also operationalized 1.76 lakh Ayushman Arogya Mandirs (AAMs) by transforming existing Sub-Health Centres (SHCs) and Primary Health Centres (PHCs) in rural and urban areas. These centers provide a comprehensive range of primary healthcare services, including preventive, promotive, curative, palliative, and rehabilitative care.

Further strengthening India’s healthcare framework, the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) was launched to develop primary, secondary, and tertiary healthcare capacities. With a total outlay of Rs 64,180 crore, this centrally sponsored scheme is enhancing national health institutions and expanding medical infrastructure to tackle emerging diseases effectively.

Expanding Healthcare Coverage Under AB-PMJAY

The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) remains a cornerstone in India’s healthcare reform, offering financial protection to vulnerable populations. The scheme provides health coverage of Rs 5 lakhs per family annually for secondary and tertiary care hospitalization, benefiting approximately 55 crore individuals from 12.37 crore economically disadvantaged families.

To further enhance coverage, the scheme has been expanded to include 6 crore senior citizens aged 70 years and above, belonging to 4.5 crore families, irrespective of their socio-economic status. This extension is facilitated under the AB-PMJAY Vay Vandana Card.

Also Read :- India’s Emerging Position in the Global Nutraceutical Market

Affordable Medicines for All

To ensure the availability of cost-effective medicines, the government has promoted the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) in collaboration with state governments. This initiative enables access to quality generic medicines at reduced prices. Additionally, Affordable Medicines and Reliable Implants for Treatment (AMRIT) Pharmacy stores have been established in select hospitals and medical institutions, further lowering the financial burden on patients.

Government’s Commitment to Healthcare Accessibility

Smt. Anupriya Patel, Union Minister of State for Health and Family Welfare, reaffirmed the government’s commitment to reducing healthcare costs in a written reply to the Rajya Sabha, stating, 

“The Government is making efforts to reduce the Out-of-Pocket Expenditure as a percentage of Total Health Expenditure. There has been a significant increase in Government Health Expenditure, which has led to enhanced accessibility and affordability of healthcare services.”

These ongoing efforts mark a transformative shift in India’s healthcare landscape, ensuring quality healthcare services reach every section of society while minimizing financial hardships for citizens.


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