Out-of-Pocket Healthcare Costs have seen a positive trend as reported by the Economic Survey 2023–24. A significant portion of government expenditure is being allocated to the healthcare sector, reaching as high as 28% of total spending. In 2013–14, private spending on health constituted 6% of total health expenditure, or 41%. This has resulted in lower out-of-pocket health costs, which are now significantly reduced compared to previous years.

Additionally, while others saw a decrease of 0.45%, inflation rose to 1% over the same period, the share of social security expenditure for health, including government-sponsored schemes and insurance, has also seen an increase from 5%. Furthermore, the percentage of children enrolled in primary schools in both public and private institutions climbed from 7% in 2014–15 to 9.3% in 2019–20, reflecting broader social and economic improvements.

Such enhancements have yielded positive outcomes such as low incidences of infant and maternal mortality and a decline in NPAs within the bank. For instance, the infant mortality rate fell from 39/lakh live births in 2013 to 28/lakh in 2020, and the maternal mortality rate declined from 167/lakh live births in 2013 to around 97/lakh in 2020.

Impact of PMJAY on Out-of-Pocket Healthcare Costs

The survey also highlights the significant impact of the Pradhan Mantri Jan Arogya Yojana (PMJAY)-Ayushman Bharat Yojana, noting that beneficiaries would have incurred 1.5 to 2 times higher costs without the scheme. As of January 12, 2024, the total savings in out-of-pocket expenses amounted to over Rs 1.25 lakh crore. Additionally, areas where PM-JAY was implemented experienced a 3.7 to 4 percent reduction in non-performing assets (NPAs) compared to regions without the scheme.

out-of-pocket healthcare costs
Image Source: Probus Insurance

Besides PMJAY, which is the leading health insurance scheme, the Prime Minister has actively expanded the operation of Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs), too. The PMBJKs have been opened in all the districts, and currently, there are more than 12,500 JPs with stocks of generic medicines cheaper by 50–90% of the market price. These centers have 1,965 kinds of medicines in stock and 293 types of surgical instruments.

According to the data for FY24, the Pharmaceuticals & Medical Devices Bureau of India has sold medicines under the Jan Aushadhi Yojana that amount to Rs 1,470 crore, which has saved the people about Rs 7,350 crore. As per the data, Jan Aushadhi Kendras are open for 1–1.2 million people per day. Also, more than 300 AMRIT pharmacies have been established, which dispense medicines for major ailments at concessional prices. In the teleconsultation during the Ayushman Bhava Campaign in September 2023, there were 18.9 million, 116.4 million people availed of free drugs, and 92.8 million available free diagnostic services. The general OPD patients increased to over twenty million, while the specialist OPD patients reached 906.9 million, and major surgeries were 65,094, while minor surgeries included 196,156.

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