PIB Summary- 11th November, 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

The Decline in Out-of-Pocket Expenditure (OOPE) in Health in India

Context

The article discusses the decline in Out-of-Pocket Expenditure (OOPE) on healthcare in India, attributed to increased government spending and improved public healthcare infrastructure.

Between 2014-15 and 2021-22, government health expenditure rose significantly, leading to better accessibility and affordability of healthcare.

This trend highlights India’s progress toward Universal Health Coverage.

Understanding Out-of-Pocket Expenditure (OOPE)

• OOPE refers to direct payments for medical services, including doctor visits, medicines, and hospital stays.
• High OOPE is a financial burden, especially for low-income families, leading to poverty and debt.
• High OOPE discourages timely medical help, resulting in worsening health conditions and higher treatment costs.
• The government has worked to reduce OOPE through increased public healthcare investments and expanding health insurance coverage.

Positive Trends in Healthcare Expenditure

• NHA data for 2021-22 shows a reduction in OOPE, attributed to increased government investment in public healthcare.
• Government Health Expenditure (GHE) as a percentage of GDP rose from 1.13% in 2014-15 to 1.84% in 2021-22.GHE’s share of overall government spending grew from 3.94% to 6.12% during the same period.
• Per capita health spending increased from ₹1,108 to ₹3,169 between 2014-15 and 2021-22.
• Increased funding allowed for strengthening public healthcare services, making healthcare more accessible and affordable, thus reducing OOPE.

Key Reasons for the Decline in OOPE

• Increased Government Health Expenditure (GHE):
  • GHE increased from 1.13% to 1.84% of GDP between 2014-15 and 2021-22, improving healthcare accessibility and affordability.
• Expansion of Social Security Expenditure (SSE):
  • SSE on healthcare rose from 5.7% of Total Health Expenditure (THE) in 2014-15 to 8.7% in 2021-22, protecting individuals from catastrophic health expenses.
• Growth of Government-Funded Insurance Schemes:
  • Programs like Ayushman Bharat and state-level health insurance schemes helped reduce the reliance on personal finances for healthcare.
• Focus on Public Health Infrastructure:
  • Increased investment in healthcare infrastructure and workforce development, especially in underserved areas has improved service availability and affordability.
• Targeted Programs for Non-Communicable Diseases (NCDs):
  • Government programs to manage and prevent NCDs reduced the financial burden on patients.
• COVID-19 Response:
  • The pandemic led to greater investments in public healthcare, addressing immediate needs and laying a foundation for long-term reduction in OOPE.

Implications of Reduced OOPE

• Improved Healthcare Accessibility:
  • Reduced OOPE makes healthcare services more affordable, encouraging individuals to seek medical care without financial worries.
• Stronger Public Healthcare System:
  • Lower OOPE allows the public healthcare system to cater to a broader population and distribute resources more equitably.
• Better Health Outcomes:
  • Affordable healthcare enables individuals to seek timely care, reducing the severity of illnesses and improving overall health outcomes.
• Increased Financial Stability for Households:
  • With less money spent on healthcare, families can allocate resources toward other essential needs, improving their financial stability.
• Foundation for Universal Health Coverage (UHC):
  • The reduction in OOPE supports India’s long-term goal of achieving Universal Health Coverage, ensuring healthcare access as a right for all citizens.

Conclusion

• The decline in OOPE reflects India’s commitment to improving healthcare accessibility, public health resilience, and moving toward Universal Health Coverage.
• Continued government investment in healthcare will help ensure that quality medical services are available to all, regardless of income.