NEW DELHI: India’s latest official health survey shows a sharp increase in illness without a corresponding rise in hospitalisation as treatment costs see steep jump.
The report, ‘Household Social Consumption: Health’, released by the National Statistical Office (NSO) this month, draws on data collected from January to December 2025. The report says 13.1% of Indians reported illness in a 15-day period, up from 7.5% in 2017–18, even as hospitalisation rates have stagnated at 2.9%.
This points to a shift in the nature of disease, from acute infectious conditions to chronic ailments that require long-term care rather than hospital admission. Hypertension, diabetes, and cardiovascular conditions now shape the burden of disease.
Hospitalisation rates have remained close to 2.9% across the last two rounds. The demand for inpatient care appears stable, even as the underlying health profile worsens. This suggests a shift toward outpatient management of chronic conditions, or a reluctance to seek hospital care due to costs.
The average out-of-pocket (OOP) medical expenditure per hospitalised person (excluding childbirth cases) in rural cases rose from Rs 5,636 in the 71st round (2014) to Rs 16,676 in the 75th (2017–18), then to Rs 31,448 in the 80th (2025)—more than a fivefold increase over the decade.
In urban areas show similar trajectory: Rs 7,670 in 2014, jumping to Rs 26,475 by 2017–18, and reaching Rs 38,688 in 2025, reflecting steeper private sector reliance and inflation in medical services.
Insurance coverage has expanded, with 47% of rural and 44% of urban residents covered. Yet OOP spending remains high. Insurance has not fully insulated households from rising costs. Partial coverage, exclusions, and the dominance of private providers dilute its effect.
Public facilities continue to act as a buffer, but their reach is uneven. Recent financial data indicate that total premiums paid for health insurance have surpassed public expenditure on health.
Instead of the state bearing the primary responsibility, households are increasingly routed through insurance markets. The recent report hints towards a change in overall disease profile.