An Economic Analysis on Inequities in Out of Pocket Expenditures in Andhra Pradesh and Telangana State

Abstract

The importance of essential healthcare has become a crucial condition to consider to achieve Universal Health Coverage (UHC). According to reports, more than 150 million individuals face financial hardship. Every year, thousands of people are forced into poverty as a result of out-of-pocket expenses. Out-of-pocket spending accounts for around 62.6 percent of overall health expenditure in India, making it one of the highest in the world. The implementation of the Rajiv Aarogyasri Scheme in undivided Andhra Pradesh in 2007 was designed to safeguard families from poverty. There are many measures to measure inequality. One such widely used measure is the concentration index which we have used to analyze inequalities in healthcare burden across various groups. Concentration indices assess the disparity between the distributions of two variables. using concentration indices reveals significant differences in the burden of OOP healthcare spending within a state. Here, we have analyzed unit-level data from NSSO’s 71st and 75th Rounds to analyze the changes in OOPME (Out of Pocket Medical Expenditure) and the inequalities among the various economic classes and social groups. We have conducted econometric tests using the Concentration Index to identify the changing nature of inequalities in Andhra Pradesh and Telangana State. The purpose of this study was to assess how inequities are in Andhra Pradesh and Telangana. How the government has insured households and the status of inequities across Rural and Urban areas and inequalities across economic classes and within social groups? The study conducted econometric tests such as concentration index. The share of health spending by household incomes and savings in India has risen, but there has been a major fall in borrowings to meet the health expenditure. There has been an increase in OOPME from 71st to 75th for AP and Telangana