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LATEST NEWS UPDATES | Costly healthcare pushes 39m into poverty by Rema Nagarajan

Costly healthcare pushes 39m into poverty by Rema Nagarajan

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published Published on Jan 10, 2010   modified Modified on Jan 10, 2010


In India, private spending on health is 4.2% of GDP. More than 70% of all health expenditure in India is paid for by people from their own pockets and this expenditure has been rising, especially for the poorest with increasing privatization of healthcare.

According to a Planning Commission paper of May 2009, several studies conducted in villages showed that healthcare expense was responsible for over half of all the cases of decline into poverty. It is estimated that in 2004-05, an additional 39 million people were pushed into poverty due to out-of-pocket payments.

NSSO data for 2004-05 shows that of the total medical expenditure per capita, medicines alone accounted for 74% of the expenses in rural areas and 67% in urban areas. If we were to consider only non-institutional medical care, which constitutes the bulk of health expenses, drugs constitute over 80% of people's expenditure. 


The Times of India, 10 January, 2010, http://timesofindia.indiatimes.com/india/Costly-healthcare-pushes-39m-into-poverty/articleshow/5429366.cms
 

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