India’s Health Horizon: Decoding Universal Coverage Challenges

Economic Survey 2024-25: Highlights achievements of AB-PMJAY (Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana), with increased funding in the Union Budget 2024-25, signalling a push toward Universal Health Coverage (UHC).
Public Health Spending: Government health expenditure as a share of total health spending is rising, while out-of-pocket (OOP) expenditure is declining, per recent national surveys.
Public Sector Role: Growing reliance on public healthcare facilities, emphasizing the need for sustained investment to address socio-economic and class disparities in access.
Health Insurance Limits: Evidence suggests health insurance isn’t a complete solution for developing nations like India; it doesn’t fully address financial risk protection.
State Variations: States with low public-funded health insurance (PFHI) but higher per capita government health spending (e.g., Himachal Pradesh) outperform those with high PFHI but lower spending (e.g., Andhra Pradesh) in reducing OOP costs.
Policy Implications: Strengthening public healthcare infrastructure over reliance on insurance-driven models is critical for equitable UHC, aligning with India’s socio-economic context.