Panjab Residents Face High Medical Costs Despite Govt. Efforts

Despite the Panjab govt.’s efforts to reduce out-of-pocket healthcare expenses, citizens continue to bear a substantial portion of medical costs directly, indicating a heavy reliance on personal payments. Panjab has one of the country’s highest out-of-pocket healthcare expenditure rates, surpassing the national average by close to 50%. According to the Comprehensive Annual Modular Survey conducted between July 2022 and June 2023 by the Ministry of Statistics and Programme Implementation, the average medical expenditure for hospitalized treatment over the last year was approximately $100 for rural and urban households. Per person expenditure on hospitalized treatment was higher in urban areas at ₹2,102 ($25) compared to ₹1,934 ($23) in rural areas. For non-hospitalised treatment over 30 days, the average expenditure per household was ₹1,177 ($14) in rural areas and ₹925 ($11) in urban areas, while per person expenses were around ₹264 ($3) in rural and urban areas. Professor Aswini Kumar Nanda from the Department of Economics at Central University, Jammu, attributed the high out-of-pocket expenditure to inadequate public health services, leading people to rely on private facilities despite higher costs. Since insurance coverage is often insufficient, especially for chronic diseases, financially vulnerable individuals may forgo essential treatment or resort to desperate financing options. Meanwhile, PM Narendra Modi launched the Ayushman Vaya Vandana card (Old Age Insurance Card) to provide health coverage for all citizens aged 70 and above, regardless of income or economic status, providing an annual cover of $6K. It aims to enhance public healthcare for India’s aging population, projected to reach 319M over the age of 60 by 2050 (SDW Vol 2, Issue 42, Story 9).