Telangana Sees Rise in Out-of-Pocket Healthcare Spending
Telangana’s healthcare spending dipped in 2022-23, says Union health ministry data
Hyderabad: Government healthcare spending in Telangana declined in 2022-23 even as household out-of-pocket expenditure (OOPE) increased, according to the latest National Health Accounts estimates released by the Union health ministry.
Government health expenditure (GHE) as a share of total health expenditure (THE) in the state fell from 46.2 per cent in 2021-22 to 41.1 per cent in 2022-23. Per capita government spending also dropped from Rs 3,007 to Rs 2,814 during the period.
In contrast, per capita OOPE rose from Rs 2,449 to Rs 2,697, marking an increase of Rs 248 per person. For a family of four, annual household healthcare spending increased from Rs 9,796 to Rs 10,788 within a year.
While the Aarogyasri scheme provides hospitalisation coverage for listed conditions, expenditure on outpatient consultations, medicines, diagnostics and transport continued to form a significant share of household spending. Nationally, the rise in OOPE coincided with a decline in government spending. Per capita OOPE increased from Rs 2,600 in 2021-22 to Rs 2,767 in 2022-23.
India’s total health expenditure fell from Rs 9.04 lakh crore in 2021-22 to Rs 8.81 lakh crore in 2022-23, while its share in GDP declined from 3.83 per cent to 3.37 per cent. Government health expenditure dropped by nearly Rs 49,000 crore, from Rs 4.34 lakh crore to Rs 3.85 lakh crore. On a per capita basis, this decreased from Rs 3,169 to Rs 2,786.
Household spending, however, rose during the same period. Total OOPE increased by Rs 26,375 crore, from Rs 3.56 lakh crore to Rs 3.83 lakh crore, raising its share in Total Health Expenditure from 39.4 per cent to 43.41 per cent. For an average family of four, annual out-of-pocket healthcare expenditure stood at about Rs 11,068 in 2022-23, or nearly Rs 923 per month.
Medicines remained a major component of spending. Prescribed pharmaceuticals accounted for 17.55 per cent of current health expenditure, while overall pharmaceutical spending made up 29.6 per cent of total health expenditure. Spending through pharmacies increased from 19.35 per cent to 21.19 per cent.
Data also showed a shift towards private providers. Spending through government hospitals declined from 18.99 per cent to 16.73 per cent, while expenditure on private hospitals rose from 26.96 per cent to 30.83 per cent. Private health insurance covered 9.19 per cent of Total Health Expenditure, leaving a large share of outpatient care, medicines and diagnostics outside insurance and public schemes.
Among southern states, Andhra Pradesh recorded a higher household burden, with OOPE accounting for 59.6 per cent of total health expenditure in 2022-23. Karnataka reported a lower out-of-pocket burden, while Tamil Nadu maintained a higher government share despite a rise in household spending.
