Archive · 3 Jul 2025
Credit Over Insurance: India's Healthcare Financial Reality
Imagine you're sick and need to go to the hospital in India.
Instead of insurance, many people have to borrow money or use credit cards to pay their bills.
This is because healthcare costs are very high, and many people don't have insurance that covers all the costs.
Even with government help, a lot of people still pay for their care themselves.
This means many families have to take out loans or sell things to pay for hospital visits, sometimes even leading to them becoming poor.
So, instead of insurance, credit is like a safety net for healthcare in India.
Credit is the primary financial recourse for healthcare in India, not insurance.
Out-of-pocket healthcare spending in India is high, ranging from 39.4% to 52% in 2021-22.
Only 37-41% of Indians have health insurance, and it often doesn't cover everyday needs.
53% of households paid for hospitalizations out-of-pocket; only 19% used insurance.
16% of households use loans or sell assets to cover hospital expenses.
- Who
- Many Indians needing healthcare.
- What
- Reliance on credit, rather than insurance, for healthcare financing.
- When
- Out-of-pocket healthcare spending was between 39.4% and 52% in 2021-22.
- Where
- India
- Why
- Because out-of-pocket spending is high and insurance coverage is limited, credit is a necessary financial recourse.
Limited Insurance Coverage
High Out-of-Pocket Spending
Health Insurance vs. Credit
Limited Insurance Coverage
The current insurance coverage is inadequate to meet the healthcare needs of many people.
High Out-of-Pocket Spending
The status quo, where people rely on credit, isn't working effectively, because many can't pay their bills and may go broke.
- Out-of-pocket spending
- 39.4% to 52% of healthcare costs in India in 2021-22
- Health insurance coverage
- 37-41% of Indians
- Households paying out-of-pocket
- 53% for hospitalizations
- Households using insurance
- 19% for hospitalizations
- Households using loans or selling assets
- 16% to cover hospital expenses