Despite a sharp rise in health insurance and financing scheme coverage between 2017-18 and 2025, patients in India continue to bear the bulk of hospitalisation costs out of their own pockets, according to the latest National Statistical Office (NSO) health consumption survey, according to Rema Nagarajan's Times of India report.

The survey shows that even with coverage expanding to 46% in rural areas and 32% in urban centres—up from 13% and 9% respectively in 2017-18—out-of-pocket expenditure (OOPE) still dominates. In rural India, patients spent an average of ₹31,500 per hospitalisation, accounting for nearly 95% of total costs. In urban areas, the average hospitalisation expense stood at about ₹47,000, with OOPE at roughly ₹39,000, or 83% of the total.

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A similar trend is seen in childbirth-related expenses, where out-of-pocket spending remains close to overall medical costs, though slightly lower in urban areas—suggesting relatively better utilisation of health schemes there.
Overall, the cost of hospitalisation has nearly doubled over the period, rising 97% in rural areas and 77% in urban India, with private healthcare facilities driving much of the increase.

Meanwhile, the hospitalisation rate has remained largely unchanged at 29 cases per 1,000 people. Rural rates have risen from 26 to 29, while urban rates have dipped slightly from 34 to 32.

(With TOI inputs)