Health Insurance and Ayushman Bharat
Why Health Costs Push People Into Poverty
In India, most health spending is paid directly by households, so a single hospital stay can wipe out savings and push families into debt.
When a family member falls seriously ill, medical bills can be far bigger than monthly income.
Out-of-pocket
Around 40 per cent of total health spending in India is paid by households directly, according to recent national health accounts.
Catastrophic
Millions of families are pushed into poverty each year by medical expenses.
Borrowing
Households sell assets or borrow at high rates to pay for care.
A cancer treatment costs several lakh rupees, and the family borrows from relatives and moneylenders.
They can hurt middle-income households too.
- Out-of-pocket spending is high.
- Health shocks cause poverty.
- Families borrow.
- Insurance can reduce the burden.
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