NATIONAL HEALTH ACCOUNTS (NHA) ESTIMATES 2020-21 AND 2021-22

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Context

The Union Health Ministry released the National Health Account (NHA) estimates for India 2020-21 and 2021-22. These estimates are the eighth and ninth in the series of reports released annually by the Union Ministry of Health & Family Welfare.

Read about India’s healthcare sector: 

https://www.iasgyan.in/daily-current-affairs/right-to-health#:~:text=With%20'health%20and%20well%2Dbeing,1.7%20nurses%20per%201%2C000%20people.

https://www.iasgyan.in/daily-current-affairs/healthcare-sector-in-india

About National Health Account (NHA) estimates

NHA estimates for India report is prepared by National Health Systems Resource Centre, designated as National Health Accounts Technical Secretariat (NHATS) in 2014 by the Union Health Ministry.

Established in 2007, the National Health Systems Resource Centre, a premier Think Tank for the Ministry of Health and Family Welfare (MoHFW), is mandated to assist in policy and strategy development in the provision and mobilization of technical assistance to the states and in capacity building for the Ministry of Health.

The NHA estimates are prepared by using an accounting framework based on the internationally accepted standard of System of Health Accounts, 2011, developed by the World Health Organization (WHO).

With the present estimate of NHA, India now has a continuous series of NHA estimates for the country, from 2013-14 to 2021-22.

These estimates are not only comparable internationally but also enable the policymakers to monitor the progress in different health financing indicators of the country.

Key Highlights 

Per Capita Health Expenditure

India's per capita health expenditure increased by 82% in the last decade, jumping from ₹3,638 in 2013-14 to ₹6,602 in 2021-22. This reflects a greater focus on health expenditure by both government and private sources.

Total Health Expenditure (THE) as % of GDP

The total health expenditure for India in 2021-22 was ₹9,04,461 crore, which equated to 3.83% of the country's GDP. This metric has remained relatively stable compared to earlier years.

Out-of-Pocket Expenditure (OOPE)

There has been a 39% reduction in OOPE as a share of total health expenditure, decreasing from 62.6% in 2013-14 to 39.4% in 2021-22. This reduction indicates improved financial protection for households, largely due to government initiatives like Ayushman Bharat and PMJAY.

Government Health Expenditure (GHE)

Government Health Expenditure (GHE) as % of General Government Expenditure (GGE)

Government Health Expenditure (GHE) as a percentage of GDP rose from 1.13% in 2014-15 to 1.84% in 2021-22, showing a significant increase in public investment in healthcare. In terms of total health expenditure, the government's share grew from 28.6% in 2013-14 to 48% in 2021-22, indicating a growing role of government spending in the sector.

Social Security Expenditure (SSE)

The report also highlighted an increase in Social Security Expenditure on healthcare from 5.7% in 2014-15 to 8.7% in 2021-22, which includes government-funded health insurance and social health programs.

Impact of COVID-19

Government spending on health saw a 37% increase between 2020-21 and 2021-22, reflecting a robust response to the COVID-19 pandemic. The expenditure also tripled in per capita terms, from ₹1,108 in 2014-15 to ₹3,169 in 2021-22.

Private Health Insurance

Expenditure on private health insurance increased significantly by 118% from 2013-14 to 2021-22, with household and employer contributions reaching ₹66,975 crore.

State-Level Data

States with the highest health expenditure include Maharashtra, Uttar Pradesh, and West Bengal. Uttar Pradesh, Kerala, and West Bengal recorded the highest out-of-pocket expenditure relative to government spending.

Read About Primary Healthcare in India: https://www.iasgyan.in/daily-current-affairs/primary-health-care-in-india#:~:text=Primary%20healthcare%20is%20the%20backbone,the%20principles%20of%20primary%20healthcare.

Sources: 

pib