Extent and magnitude of out-Of-Pocket expenditure on health in India: A Region-Wise analysis

Abstract

Designing health systems is complex, especially in a diverse country like India, due to its vast variations. Healthcare financing poses a significant challenge as households bear a considerable share of expenses. Out-of pocket health care expenditure (OOPE) often leads Indian house holds to financial difficulties, especially when dealing with hospitalization costs. The present study is based on unit-level data from the NSSO 75^th round. The findings demonstrated that several Indian state regions display significant disparities between urban and rural areas, with rural residents severely lacking access to necessary healthcare services. Second, the percentage share of injuries was found to be highest among outpatients and the percentage share of infection was high among inpatients nation wide. Third, the analysis revealed that Island territories and Northern India have the highest average out-of-pocket expenditure on health as a percentage of total health expenditure (i.e.,92.38% and 76.67%). Due to the exceptionally high prevalence of OOPE, it is imperative that more people have health insurance and that outpatient services be covered by it. To enhance financial risk protection, it is necessary to prioritize health promotion and disease prevention initiatives and increase the regulation of private healthcare providers while strengthening the public health system.