SustainablyAlpha January Edition

Healthcare
Access and
Affordability
Financial barriers to healthcare in India
plays a huge factor in accessibility and
affordability, particularly for individuals and
families with limited economic means. Outof-pocket
expenses for medical treatments,
medications, and hospitalisations can
quickly escalate, often leading to financial
hardships, especially for those already
struggling with economic vulnerability. The
burden is particularly acute in low-income
households and rural areas, where the
choice between seeking necessary medical
care and meeting basic needs becomes a
precarious balancing act. This financial
strain exacerbates existing health
inequality, creating a situation where
individuals might delay or avoid medical
treatments due to concerns about their
ability to afford them. The consequences of
these financial barriers extend beyond
individual hardships, contributing to the
perpetuation of health inequalities.
Individuals from economically
disadvantaged backgrounds face additional
challenges in accessing timely and quality
healthcare, deepening the existing
disparities in health outcomes. Addressing
these financial barriers is integral to
creating a more inclusive and equitable
healthcare system in India, one that ensures
that every individual, regardless of
economic standing, can access the
healthcare they need without enduring
undue financial hardships.
As of the latest available data, out-ofpocket
expense continues to be a
dominant source of healthcare financing
in India. According to the National Health
Accounts estimates for the year 2016,
approximately 62% of total health
expenditure is financed through out-ofpocket
payments. This high reliance on
individual payments signifies a significant
financial burden on households seeking
healthcare services. The NSSO's data
highlights the prevalence of catastrophic
health expenditures in India. A substantial
percentage of households face significant
financial strain due to healthcare costs.
The NSSO's survey reveals that a
considerable portion of households
spends more than 10% of their total
household budget on healthcare,
indicating the existence of financial
barriers to accessing medical
services.When a significant portion of a
household's budget is earmarked for
healthcare, people may be forced to make
difficult choices, potentially delaying or
forgoing essential medical treatments
due to concerns about their ability to
afford them. Unlike systems with a higher
proportion of public or private insurance
coverage, this places a heavier financial
burden on households, especially when
faced with unexpected or major health
events. This implies that a significant
share of financial resources that could be
directed towards education, housing, or
other essential needs is being allocated to
healthcare, potentially limiting overall
household well-being.
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