Why health insurance premiums beating motor insurance is both good and bad news
₹4,300-4,400 over more than half a decade. However, according to the Economic Survey 2023, out-of-pocket expenses on healthcare by individuals has fallen sharply from 64.2% of all healthcare expenses in 2012-13 to 48.2% in 2018-19, even as the government’s share of total healthcare spending has risen sharply from 28.6% to 40.6% of the total during the same period.
However, data, particularly government data, are somewhat unreliable in India. For instance, the numbers for fall in out-of-pocket health costs don't align with WHO data.
As per the UN organization, “nearly 70% of all outpatient visits, about 58% of all inpatient episodes, and approximately 90% of medicines dispensed, and diagnostic facilities in India are currently (2022 figures) provided by either for-profit or not-for-profit providers in the private sector." According to the 7th National Health Accounts Estimates (2019-20) prepared by the health ministry, the share of out-of-pocket expenditure in total health expenditure has declined from 62.6% in 2014-15 to 47.1% in 2019-20 – which gels with the Survey estimates – but it also says that the government’s share of health expenditure as a percentage of GDP increased from 1.13% (2014-15) to 1.35% (2019-20), which does not match the Survey numbers. Statistical quibbles apart, the rising share of healthcare premiums may not necessarily reflect wider health coverage.
This is because healthcare costs have been spiralling and insurance costs have followed suit. And then there is the challenge of covering the uncovered.
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