HEALTH FINANCING MECHANISMS IN INDIA: AN APPRAISAL OF ITS PERFORMANCE

The performance of India in achieving Millennium Development Goals (MDG) related to the provision of healthcare is sorely disappointing. Insufficient government funding for health care, inadequate and ineffective health financing mechanisms, poor delivery of health care especially in public facilities & excessive reliance on unregulated high cost private providers has contributed to the poor accomplishment of MDG goals especially in informal sector. This has resulted in massive out- of- pocket expenditures and consequent impoverishment of the poor. There is an urgent need to restructure the health care system to achieve the Alma- Ata declaration of 'Health-for-all' and to meet WHO health system goals. To envision India with equitable and efficient health care system in the coming years, various mechanisms for financing health expenses are to be integrated and public-private partnership has to be encouraged. This paper examines the performance and challenges faced by diverse health financing mechanisms in achieving health care goals.