09-October-2024-Editorial

NATIONAL HEALTH ACCOUNTS (NHA) ESTIMATES

The Union Ministry of Health and Family Welfare recently released the National Health Account (NHA) estimates for the fiscal years 2020-21 and 2021-22.

These reports are part of a series that track healthcare spending trends in India, helping in better understanding of the country’s health expenditure patterns.

Key Findings of NHA Estimates

Rising Government Health Expenditure (GHE)

• The share of GHE in India’s GDP increased from 1.13% in 2014-15 to 1.84% in 2021-22.
• Similarly, the GHE’s share in the General Government Expenditure (GGE) grew from 3.94% to 6.12% in the same period.
• This reflects the government’s increased focus on strengthening public health services, especially in the wake of the COVID-19 pandemic.

Decline in Out-of-Pocket Expenditure (OOPE)

• From 2014-15 to 2021-22, the share of OOPE in Total Health Expenditure (THE) reduced from 62.6% to 39.4%.
• This decline indicates that government initiatives aimed at improving public healthcare have helped lessen the financial burden on individuals seeking medical care.
• The government’s contribution to THE increased from 29% to 48%, showing greater reliance on public health services.

Total Health Expenditure (THE)

• India’s total health expenditure in 2020-21 was Rs. 7,39,327 crores, which was 3.73% of GDP, with per capita spending of Rs. 5,436.
• By 2021-22, THE rose to Rs. 9,04,461 crores, constituting 3.83% of GDP, with per capita expenditure increasing to Rs. 6,602.

Increase in Social Security Expenditure (SSE)

• SSE’s share in THE rose from 5.7% in 2014-15 to 8.7% in 2021-22.
• This covers government-funded health insurance, medical reimbursements, and social health insurance programs, which reduce out-of-pocket expenses and provide financial protection.

Distribution of Current Health Expenditure (CHE)

• The Union Government’s CHE share in 2020-21 was Rs. 81,772 crores (12.33% of CHE), and by 2021-22, it increased to Rs. 1,25,854 crores (15.94% of CHE).
• State contributions to CHE also increased, from Rs. 1,38,944 crores in 2020-21 (20.94%) to Rs. 1,71,952 crores in 2021-22 (21.77%).

National Health Accounts Methodology

• NHA estimates follow the System of Health Accounts (SHA) framework established by the World Health Organization in 2011. This helps to standardize and compare health spending across countries.
• The NHA methodology is regularly updated to keep pace with India’s changing healthcare landscape, ensuring that data is accurate and reflects evolving health policies.

Government Initiatives

• National Health Mission (NHM)

• Ayushman Bharat and Pradhan Mantri Jan Arogya Yojana (PMJAY)
• National Medical Commission
• PM National Dialysis Programme
• Janani Shishu Suraksha Karyakram (JSSK)
• Rashtriya Bal Swasthya Karyakram (RBSK)

Conclusion

The NHA estimates for 2020-21 and 2021-22 provide important insights into India’s healthcare spending. The growing government expenditure on health, declining out-of-pocket costs, and rising social security spending point to a shift towards a more inclusive and resilient healthcare system.

These changes reflect the government’s ongoing efforts to improve healthcare infrastructure and reduce financial barriers, moving closer to achieving Universal Health Coverage (UHC) for all citizens.