Skip to main navigation

Universal health cover for India - Framework for financing UHC in India - EY - India

Universal health cover for India

Framework for financing UHC in India

  • Share
The challenge of financing UHC is often evaluated in the light of rising cost pressures against limited resources and is, consequently, relegated as a “utopian” concept.

We propose a 5P framework as a tool to aid a descriptive, high-level analysis of the existing and proposed situation in a country’s health system with respect to health care financing and imperatives for the design and implementation of a UHC system for India.

1. Plan - Target coverage with minimal out-of-pocket (OoP) expenditure

2. Pay - Raise sufficient and sustainable revenues from payers, efficiently and equitably

3. Pool - Consolidate the raised funds at a national level to facilitate equitable allocation to states, as per their respective needs irrespective of contribution to funds raised

4. Purchase - Transfer pooled resources to health care providers on behalf of the covered population

5. Provide - Ensure quality and adequacy of health care delivery with minimum waste of resources

5P Framework to draw learnings from global UHC systems
5P Framework to draw learnings from global UHC systems

5P Framework to draw learnings from global UHC systems

5P Framework to draw learnings from global UHC systems

Estimated expenditure on UHC


  • The implementation of UHC is likely to increase the consumption of health care services. A sharper increase is anticipated in the short term, when a large latent need is addressed. Hence, total expenditure on health is likely to increase.
  • Given the scale of implementation and infrastructure constraints, it may be prudent to assume a 10-year timeframe to accomplish UHC in totality. It is estimated that government health expenditure of 3.7%-4.5% of GDP in 2022 would be required to implement the UHC program, covering out-patient and in-patient services for the entire population, assuming that hospitalization rate increases to match the hospitalization rate of the top MPCE urban classes.
  • Including OoP expenditure, it is estimated that the total spending on health would be between 5.5%-6% of GDP.

Key features of the proposed UHC program for India
Key features of the proposed UHC program for India


Key features of the proposed UHC program for India

Key features of the proposed UHC program for India

<< Previous | Next >>

Inside

Related Content

Contacts

  • Sumit Goel  
    Associate Directors
    Tel: 022-61921974
Back to top