Why are Indian households struggling with medical costs despite health initiatives?
India's out-of-pocket health expenses are among the highest in major economies. Though it decreased from 2014 to 2024, it remains significant. China saw a smaller decrease in the same period. Emerging Asia's health protection gap has widened. Risi...
Low disposable incomes and inadequate public health infrastructure leave uninsured households vulnerable
India had one of the highest out-of pocket (OOP) health expenditures as a percentage of total health expenditure among major economies in 2024, despite a decline from over 60% in 2014 to under 40% estimated in 2024. At the same time China’s OOP share dropped slightly from over 36% to 32% over the same period.
HEALTH PROTECTION GAP
Widened by 21% since 2017 in emerging Asia.
China alone accounts for nearly half the region’s gap
Key Drawback: Rising medical costs from 2017
Reasons:Gaps in coverage and access
2024
More Indian households experienced difficulty in affording medical costs
Despite initiaitives like Ayushman Bharat (2018) and various state insurance schemes, gaps in coverage remain in India
Low disposable incomes and inadequate public health infrastructure leave uninsured households vulnerable
