Out-Of-Pocket Expenditure (OOPE)

Out-Of-Pocket Expenditure (OOPE)

Part of: Prelims and Mains GS-III- Health

In News: As a share of total health expenditure, the OOPE has come down to 48.8% in 2017-18 from 64.2% in 2013-14. Even in the case of per capita OOPE, there has been a decline from ₹2,336 to ₹2,097 between 2013-14 and 2017-18.

• One of the factors attributing to this decline is the increase in utilisation and reduction in cost of services in Government health facilities. 
• If we compare National Health Accounts (NHA) 2014-15 and 2017-18, there has been a decline in OOPE for Government hospitals to the tune of 50%.

Did government measures help in reduction of OOPE?

• The NHA estimates for 2017-18 clearly showed that there had been an increase in the share of Government health expenditure in the total GDP of the country.
• It has increased from 1.15% in 2013-14 to 1.35% in 2017-18. Additionally, the share of Government Health Expenditure in total health expenditure has also increased over time.
• In 2017-18, the share of Government expenditure was 40.8%, which is much higher than 28.6% in 2013-14.
• The report further indicates that in per capita terms, the Government health expenditure has increased from ₹1,042 to ₹1,753 between 2013-14 to 2017-18.