Discuss the significance of declining Out-of-Pocket Expenditure in India's healthcare financing, as reflected in the National Health Accounts 2022-23. What structural reforms have contributed to this trend?

Q. Discuss the significance of declining Out-of-Pocket Expenditure in India's healthcare financing, as reflected in the National Health Accounts 2022-23. What structural reforms have contributed to this trend? (15 marks, 250 words)

The National Health Accounts (NHA) 2022-23, prepared under the WHO-aligned System of Health Accounts (SHA) 2011 framework, records a nearly 21-percentage-point fall in Out-of-Pocket Expenditure (OOPE) as a share of Total Health Expenditure — from 64.2% (2013-14) to 43.4% (2022-23) — a decisive shift toward public financing [1].

Significance of declining OOPE - Financial protection: lower OOPE reduces the risk of catastrophic health expenditure that pushes households into poverty — a core equity gain [1]. - Progress toward Universal Health Coverage: rising Government Health Expenditure in GDP (1.15% → 1.43%) and in Total Health Expenditure (28.6% → 43.7%) signals stronger state responsibility for health [1]. - Inclusive growth: freed household savings can flow to education, nutrition and consumption, advancing SDG-3. - Fiscal prioritisation: GHE's share in general government expenditure rose from 3.78% to 4.89%, showing health moving up the budget ladder [1].

Structural reforms driving the trend - Social security expansion: government-funded insurance under Ayushman Bharat PM-JAY and employee schemes lifted Social Security Expenditure from 6% to 9.9% of THE [1]. - Primary healthcare push: spending on primary care more than doubled, strengthening Health and Wellness Centres and cutting referral costs [1]. - National Health Policy 2017 anchored these targets institutionally [1].

The trend marks a structural transition from a household-financed to a state-supported health system. Sustaining it demands raising GHE toward the NHP-2017 goal of 2.5% of GDP, so financial protection becomes universal and irreversible.

(~250 words)

Sources: 1. Union Health Ministry Releases the National Health Accounts Estimates for India 2022-23, PIB — OOPE decline (64.2%→43.4%), GHE/GDP and GHE/THE rise, SSE growth (6%→9.9%), primary healthcare spending, SHA 2011 framework.