Question

Out of Pocket expenditure constitute the highest component of healthcare expenditure for the poor in India. What are the ways in which this can be brought down? Give an example of what the government is doing to bring healthcare costs down? 1.

Answer 1

With Public health expenditure remaining close to 1.4% of GDP (2017-18) in India, it is found that only 15% of the population are under health insurance. The costs of health care incurred by the individuals (out of pocket) are close to 70% while 30% is taken care by the government. These statistics show a huge burden on the Indian poor who struggle to make ends. Further according to various national health accounts, around 86% of the rural household are neglected from health support which has an immediate effect of pushing majority of people below the poverty line making them extremely poor.
However, it can't be denied that India is a country of great potential and a standing demographic dividend ready to get utilised to the fullest. There are ways that these health cost problems can be diminished.
1) Increasing the percentage of public health expenditure to GDP up to the world average i.e 6%.
2) Giving more and more people under health insurance.
3) Mostly, such innovations and technological advancement in medicines, hospitals etc so as to increase accessibility and affordability.

Recently, the government of India has come up with various programmes and initiative to correct these statistics. One of the most important one is AYUSHMAN BHARAT- National health protection Mission. (AB- NHPM) under national health policy 2017.
1) It is a centrally sponsored health insurance scheme with an objective to target 10 crore families from the poorest strata (according to 2011 census)
2) With no cap on family size, it will provide insurance upto 5 lakhs rupees per family to avail services anywhere in the country.
3) It has been established to cover both before and after hospitalisation costs. It goes up to the point of even covering transport allowance.
4) The citizens are to be given cashless benefits and the treatment are met according to a package rate decided by the government that includes the expenses of the treatment.