Things to Know About the Cost of Healthcare in India

The improvement of medical infrastructure and treatments over the past few years has been remarkable. However, the cost of healthcare in India is increasing with this advancement.

India’s healthcare system comprises both public and for-profit private providers. With a substantial presence of private institutions, 69.8% of total outpatient care falls under them. However, treatments from private service providers typically cost higher.

According to NCBI, the estimated annual cost of universal healthcare is going to be ₹1,713 per person. This cost can increase by 24% for using branded medical supplies and drugs. This means the Indian government must spend 3.8% of the country’s GDP to universalise healthcare services.

Below are some factors that have a greater impact on the cost of healthcare in our country -

1. Location

A significant factor influencing the cost of healthcare in India is the location of treatment. This indicates which city or area you are availing your treatments from. Treatments in metropolitan cities are usually costlier than those in small cities and towns. Plus, treatment costs may vary from one metropolitan area to another.

2. Infrastructure

The cost of healthcare also varies on the basis of infrastructure type. Treatments generally cost high if the infrastructure of the healthcare centre is advanced and modern. This is why most middle and lower-middle class patients can only avail low-quality healthcare services.

3. Availability of Services

Most developing countries lack infrastructure for specific treatments. It tends to be costlier if you fetch such a rarely available service. Also, the transport cost to reach the place where such treatment is available is an additional burden for many people.

4. Fatality of Diseases

Healthcare costs become high in case your disease is fatal or incurable. Such diseases usually need more expensive drugs, tests, and daily checkups, among other things. All these keep adding to the total cost of your treatment.

With significant growth in infrastructure, the cost of healthcare is shooting up. Although advanced technology has sped up the treatment and curing process, it hasn’t eased the medical expenses for a large belt of Indians.

The current annual rate of medical inflation is 15%. Conversely, India’s overall inflation rate is 6-7% per annum. Health expenditure currently stands at 5% of India's private final consumption expenditure. This can increase by a minimum of 11% from the current level of India. Gradually, the cost of healthcare in India is becoming unaffordable for people with financial drawbacks.

As discussed above, the cost of healthcare in India is becoming way too expensive for many people. In such a situation, health insurance can be beneficial in many ways.

Here are some advantages -

1. Doesn’t affect your savings

The sky-rocketing treatment costs can be a huge burden for most individuals. Especially in the case of a fatal disease, these costs continue to exhaust your savings. In such a condition, a health insurance policy can cover your treatment expenses. Thus, you need not spend all your savings on treatment.

2. Helps cover critical medical conditions

Medical costs in India for critical conditions like organ failure or stroke is relatively higher. A health insurance policy will cover certain charges that you may suddenly face in such times.