The Union Health Ministry released the NHA estimates for 2022‑23 on 27 May 2026. The report shows that the share of OOPE in total health spending has dropped from 64.2% in 2013‑14 to 43.4% in 2022‑23. At the same time, Government Health Expenditure rose from 1.15% to 1.43% of GDP and per‑capita spending increased almost three‑fold.
Key Developments
- OOPE share fell by 21 percentage points over a decade, indicating reduced financial strain on households.
- Government health outlay grew to 1.43% of GDP and to 4.89% of total government expenditure in 2022‑23.
- Per‑capita government health spending rose from ₹1,042 to ₹2,786 between 2013‑14 and 2022‑23.
- During the COVID‑19 emergency (2021‑22), health spending peaked at 1.84% of GDP, pushing OOPE down to 39.4% for that year.
- Social security health spending increased from 6% to 9.9% of total health outlay.
- Private health insurance coverage grew from 3.4% to 9.2% of total health financing.
Important Facts
- The decline in OOPE is attributed to the operationalisation of over 1.8 lakh Ayushman Arogya Mandir centres across India.
- These centres provide free services under 12 expanded packages, covering reproductive health, communicable and non‑communicable diseases, free drugs, diagnostics, tele‑consultations, and wellness sessions.
- Pharmaceutical purchases—including vitamins, protein supplements, and other health supplements—remain the largest driver of OOPE.
- The report follows the System of Health Accounts (SHA) 2011 framework, prepared by the National Health Accounts Technical Secretariat (NHATS).
Exam Relevance
Understanding the shift in health financing is crucial for GS Paper III (Economy). The data illustrate how increased public spending can lower OOPE, a key indicator of financial protection in health. Aspirants should link these trends to the broader goals of Universal Health Coverage, the Ayushman Bharat programme, and the Sustainable Development Goals (SDG‑3). The rise in private health insurance also reflects changing consumer behaviour and the role of the insurance sector in health security.
Way Forward
- Strengthen the quality and reach of Ayushman Arogya Mandir to further reduce OOPE, especially in rural and underserved areas.
- Promote price regulation of essential medicines and supplements to curb the pharmaceutical component of OOPE.
- Encourage public‑private partnerships that expand affordable private health insurance while maintaining regulatory safeguards.
- Continue systematic tracking using the SHA 2011 framework to monitor financing trends and guide policy adjustments.