Government Health Spending Reduces Out-of-Pocket Costs by 21%

India sees a significant reduction in out-of-pocket health expenses, dropping from 64.2% to 43.4% over nearly a decade. This improvement is attributed to increased government health spending and initiatives like Ayushman Arogya Mandir, resulting in greater access to healthcare and reduced financial burden on households.

In recent years, India has witnessed a notable decrease in the proportion of out-of-pocket expenditure on health, dropping from 64.2% in 2013-14 to 43.4% in 2022-23. This decline correlates with increased government health spending, according to officials.

The health ministry credits initiatives such as the establishment of Ayushman Arogya Mandir centers across India. These centers offer preventive and curative healthcare services and have improved public accessibility. The 80th round of the National Statistical Office also shows reduced health spending at the household level.

Ayushman Arogya Mandirs provide diverse services free of charge, including expanded medical packages and wellness sessions. This accessibility has contributed to fewer sickness episodes, officials noted. The government is addressing out-of-pocket costs for pharmaceuticals by offering drugs without charge at public health facilities.

Efforts such as the Pradhan Mantri Bhartiya Jan Aushadhi Yojana, AMRIT pharmacies, and price control by the National Pharmaceutical Pricing Authority are further tackling the cost of medicines, making healthcare more affordable.