Marginal increase in India's health spend: National Health Accounts

The total health expenditure (THE) as a percentage of GDP has increased marginally from 3.2% in 2018-19 to 3.3 % in 2019-20, the same level of health expenditure that was registered in 2017-18, National Health Accounts Estimates for India (2019-20) released in New Delhi indicates. The Government Health Expenditure's share in the country's total GDP also showed an increase from 1.28% in 2018-19 to 1.35% in 2019-20.

The share of Out-of-Pocket Expenditure (OOPE) in the total health expenditure was 47.1%, lower than 48.2% in 2018-19. The OOPE has been declining continuously over the years. It was 62.6% in 2014-15.

The Social Security Expenditure on health as percent of total health expenditure however came down to 9.3% in 2019-20 from 9.6% the previous year. The private health insurance as a percentage of total health insurance touched 7% in 2019-20, up from 6.6% in 2018-19.

"Through National Health Accounts Estimates report we can see that indicators like Out-of-pocket expenditure (OOPE) reduction are going hand in hand with increased public spending in healthcare. Thus, showcasing the right trajectory country is taking towards achieving milestones of Universal Health Coverage," Vinod K. Paul, Member (Health) of NITI Aayog, said.

Noting the increasing share of private health insurance, Paul said that "this shows a sign of maturity for a country in terms of insurance arena as those who can afford, will afford it from private players too. This complements the government system of primary, secondary and tertiary care."

Even though the Social Security Expenditure (SSE) on healthcare declined year on year, it has increased over the last six years. As a percentage of total health expenditure, the share of SSE on health, which includes government-funded health insurance, medical reimbursement to government employees, and social health insurance programs, increased from 5.7% in 2014-15 to 9.3% in 2019-20.

Paul also highlighted the persistent efforts in increasing total public spending on health at state level. He urged the state governments to move ahead in healthcare spending as percentage of their total budget to about 8% which is currently 4-5% for many states. "This spending must be in line with the bigger picture of benefiting the citizens," he said.