Impact of Indian Healthcare Financing System on Health Outcome of its Population measured by Life Expectancy at Birth

Abstract: This study aims to assess the impact of India's health financing system on the life expectancy of its population. Data from the WHO Global Health Expenditure Database for the years 2000-2020 were utilized, focusing on indicators such as life expectancy at birth, current health expenditure per capita, domestic government health expenditure as a percentage of current health expenditure, domestic private health expenditure as a percentage of current health expenditure, and out-of-pocket expenses. Multiple regression analysis was employed to examine the relationship between health expenditure categories and life expectancy at birth. The findings suggest that improving life expectancy requires a shift away from predominantly out-of-pocket financing towards increased government investment in healthcare. Enhancing government-funded health insurance, medical reimbursements for government employees, and social health insurance programs can reduce out-of-pocket spending and should be promoted. The Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PM JAY) should be further expanded and promoted among the public, while the nation should accelerate healthcare reforms and gradually transition towards state financing of health.

Keywords: Healthcare Financing System, Life expectancy at Birth,  Current Health Expenditure, General Government Health Expenditure, Domestic Private Health Expenditure, Out of Pocket Expenditure