Health Insurance Coverage Triples In Rural India, Social Security Spend Sees Jump: Government Data

Government spending on health insurance and social security schemes has risen to nearly 10 per cent in a decade from 6 per cent of total health expenditure in 2013-14, according to the latest National Health Accounts estimates released by the Union Health Ministry.

The increase in Social Security Expenditure (SSE) on health has been driven largely by government-financed health insurance schemes, including Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, medical reimbursements for government employees and other social health insurance programmes, the report said.

The findings also align with data from the National Statistical Office's 80th round health survey, which showed a sharp increase in health insurance coverage under government-financed schemes between 2017-18 and 2025.

According to the survey, coverage in rural areas rose more than threefold, from 12.9 per cent to 45.5 per cent during the period. In urban areas, coverage increased from 8.9 per cent to 31.8 per cent.

Officials said the wider reach of these schemes has translated into substantial savings for households struggling with healthcare costs.

"As per the Economic Survey 2024-25, since its launch, AB-PMJAY has saved families over Rs 1.52 lakh crores in out-of-pocket healthcare expenses," the ministry noted.

The ministry said the rise in SSE reflects a strengthening of the government's financial protection mechanisms aimed at reducing the burden of out-of-pocket healthcare spending on households.

"This increased share of SSE on health is indicative of the strengthening of the financial protection net provided by the government against the burden of OOPE," the ministry said.

The National Health Accounts estimates are compiled annually and track actual expenditure on healthcare by governments, private entities, and other sources. The current edition for 2022-23 is the tenth report in the series since 2013-14 and has been prepared using the internationally accepted System of Health Accounts framework.

The report said the data provides a long-term picture of India's healthcare financing trends and the growing role of publicly funded insurance schemes in expanding access to medical care while reducing financial distress for patients.

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