Karnataka Named Among India's Best States for Shielding Families From Medical Bills
BENGALURU — Karnataka has emerged as one of India's top-performing states in protecting families from high medical bills, according to the latest National Health Accounts (NHA) estimates released last week.
The report, which covers the 2022-23 fiscal period, reveals that out-of-pocket expenditure (OOPE) accounts for just 29.2% of Karnataka's total health expenditure. This figure is significantly lower than the national average of 43.4%, indicating a lighter direct financial burden on local households facing healthcare costs.
Among the 21 states evaluated in the report, only Uttarakhand and Jammu & Kashmir recorded comparable or lower out-of-pocket shares, at 28.8% and 29.7% respectively. This places Karnataka among the best-performing states in limiting the direct burden of healthcare costs on households.
However, the data highlights a unique trend in how Karnataka achieves these low costs. While Uttarakhand and Jammu & Kashmir rely heavily on state funding—with government spending accounting for 64.4% and 68.3% of their total health expenditures respectively—Karnataka's government spending covers just 33.2% of its total health expenditure. This means Karnataka manages a similarly low out-of-pocket burden while spending far less, proportionally, from the public purse.
In absolute terms, Karnataka residents pay an average of Rs 2,049 per person annually in out-of-pocket medical expenses. While this is higher than Uttarakhand's Rs 1,593 and Jammu & Kashmir's Rs 1,701, it remains well below the national average of Rs 2,767.
Overall, Karnataka spends Rs 7,024 per person on healthcare, which is higher than the national average of Rs 6,373. Despite this, the state's total healthcare spending constitutes only 0.7% of its Gross State Domestic Product (GSDP), which is lower than the national average and that of peer states.
Ritvik R. Pandey, the principal secretary of the department of health and family welfare, attributed the state's success to long-standing public health initiatives. He highlighted programs such as Arogya Karnataka and Yashaswini, alongside a robust government healthcare system.
According to Pandey, the state's provision of free medicines and diagnostic facilities—including dialysis, CT scans, and MRI services—has successfully reduced public reliance on expensive private providers. The availability of nearly 900 free medicines has further helped shield residents from high out-of-pocket costs.
