Healthcare in India faces massive strain as costs rise by 14% annually; most expenses paid out-of-pocket

Healthcare in India is facing a growing crisis as costs continue to rise sharply, increasing by 14% annually, according to the ACKO India Health Insurance Index 2024. The report highlights that this double-digit inflation in healthcare is putting immense pressure on individuals and families across the country. "Healthcare inflation was reported at 14 per cent in India," the report stated, illustrating the persistent increase in healthcare expenses.

Out-of-pocket expenditures

One of the most alarming findings in the report is that 62% of healthcare expenses are paid out of pocket by patients and their families. This has created a significant financial burden, often forcing individuals to turn to loans and borrowings to cover medical costs. The report noted that 23% of hospital charges are financed through borrowings, emphasizing the toll this takes on household financial health.

In many cases, these out-of-pocket expenses are unpredictable and steep, leading to mounting debts for families. As health crises strike unexpectedly, the lack of widespread health insurance coverage is leaving families vulnerable, highlighting the urgent need for better healthcare protection.

Kidney disease capital: Delhi

Kidney disease has emerged as a growing concern in India, with Delhi being identified as the kidney disease capital of the country. The report states that Delhi NCR had the highest share of health insurance claims related to kidney health, followed closely by Kochi. "Delhi is the capital for kidney disease, followed by Kochi. Delhi NCR had the highest share of claims related to kidney health," the report confirmed, indicating a rising trend in kidney-related issues.

Beyond the staggering number of claims, the financial impact of treating kidney diseases has also been brought to light. The average age of patients claiming for kidney and renal problems is 47 years, showing that kidney issues are affecting people at a relatively young age. One of the highest bills for kidney-related treatment in the past year amounted to Rs 24,73,894, showing just how costly these health conditions can be.

Rising heart disease in major cities

The report also flagged the increasing number of heart disease cases in India's metropolitan cities. Kolkata and Mumbai recorded the highest number of claims related to heart conditions, with hospitalizations for cardiovascular issues like heart attacks rising sharply, particularly among people aged 31 to 50 years.

"Kolkata and Mumbai topped the list of metros when it came to disorders of the circulatory system like heart attacks," the report noted, painting a worrying picture of the growing burden of lifestyle diseases in urban India. Poor diets, stress, and lack of exercise are all contributing factors, creating a serious public health challenge for the country.

In addition to kidney and heart diseases, the report also highlighted concerns surrounding cancer. The ACKO Index predicts that cancer cases are expected to rise by 13% between 2020 and 2025, which, coupled with the already high cost of cancer treatment, adds further strain to the healthcare system.

Expanding health coverage

In response to the growing healthcare challenges, the Indian government has introduced measures aimed at reducing the burden on citizens. On September 11, 2024, the Union Cabinet approved health coverage for all senior citizens aged 70 years and above, under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY). This scheme will provide health insurance regardless of income level, offering Rs 5 lakh per family per year for secondary and tertiary care hospitalisation.

This move is a step forward in protecting senior citizens from catastrophic healthcare expenses, but the need for broader reforms remains critical as the out-of-pocket burden for millions of younger citizens continues to mount.

(with inputs from agencies)