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New Delhi: Indian families continue to grapple with high out-of-pocket medical expenses, even as government programs like Ayushman Bharat aim to boost health coverage. In 2024, India remains among the countries with the highest share of out-of-pocket (OOP) health expenditures as a proportion of total health spending.
The OOP share in India has declined over the past decade—from over 60% in 2014 to under 40% in 2024. Despite this progress, the burden on households remains significant. For comparison, China’s OOP share dropped modestly from over 36% to 32% during the same period.
Across emerging Asia, the health protection gap has widened by 21% since 2017, with China accounting for nearly half of the regional shortfall. The increase is primarily due to rising medical costs outpacing growth in insurance coverage, combined with gaps in access to affordable care.
Many Indian households continue to face difficulty affording essential medical services, despite flagship initiatives such as Ayushman Bharat launched in 2018 and various state-level insurance schemes. Persistent challenges include low disposable incomes and an inadequate public health infrastructure, both of which leave uninsured families especially vulnerable to financial shocks from illness or injury.
“More Indian households experienced difficulty in affording medical costs in 2024—even as initiatives like Ayushman Bharat (2018) tried to close the gap. Low disposable incomes and inadequate public health infrastructure leave uninsured households vulnerable.”
Disclaimer:
This article is based on publicly available data and industry reporting as of 2024. For individual medical advice or policy details, please consult qualified health professionals or official government sources.
