Karnataka Out-of-Pocket Medical Spending Drops to 29.2% of Total Health Costs

Karnataka has emerged as one of the top-performing states in India at protecting families from high medical bills, according to the National Health Accounts (NHA) estimates for 2022-23 released in June 2026. The findings reveal that households in Bengaluru and across Karnataka are better shielded from catastrophic healthcare expenses than those in most other parts of the nation.

The NHA report, which was released last week, provides a detailed look at healthcare spending across India. It reveals that out-of-pocket expenditure (OOPE) in Karnataka accounts for 29.2% of the state's total health expenditure (THE). This is a stark contrast to the national average, where out-of-pocket spending makes up 43.4% of India's total health expenditure.

The low out-of-pocket share indicates that families in Karnataka face a much lighter direct financial burden when seeking medical care. This performance positions the state as a leader in healthcare affordability, ensuring that medical costs do not lead to severe financial distress for local residents.

The NHA report published state-level indicators for 21 states across India. Among these 21 states, Karnataka's performance is rivalled by only two other regions. Uttarakhand reported an out-of-pocket expenditure share of 28.8% of its total health expenditure, while Jammu & Kashmir reported a share of 29.7%. No other state among those analyzed managed to match or beat Karnataka's low level of out-of-pocket healthcare costs.

By keeping out-of-pocket expenditure well below the national average, Karnataka has demonstrated a stronger capacity to protect its population from the high costs of medical treatments. According to the estimates, this lower percentage of out-of-pocket spending means that families in Karnataka are less likely to experience catastrophic financial setbacks due to sudden medical emergencies. The state's ability to keep these costs down represents a major milestone in public health and economic security for its residents.