The Ministry of Health and Family Welfare has implemented multiple initiatives to reduce Out-of-Pocket Expenditure (OOPE) on healthcare by expanding access to free and affordable health services across India. The government operationalized 1.87 lakh Ayushman Arogya Mandirs nationwide to deliver comprehensive primary healthcare services including preventive, promotive, curative, palliative, and rehabilitative services, covering reproductive and child healthcare, communicable and non-communicable diseases.
Key financial protection measures include Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) providing health cover of ₹5 lakhs per family per year for secondary and tertiary care hospitalization to over 12 crore economically vulnerable families (bottom 40% of population). The scheme has been expanded through Ayushman Vay Vandana to cover 6 crore senior citizens aged 70 years and above belonging to 4.5 crore families, irrespective of socio-economic status.
The National Free Drugs Service Initiative and Free Diagnostics Service Initiative have been rolled out nationwide, with financial support to States/UTs for essential drugs at various healthcare levels: 113 drugs at AAM-Sub Health Centres, 179 at AAM-Primary Health Centres, 301 at Community Health Centres, 318 at Sub-District Hospitals, and 381 at District Hospitals. Additional initiatives include Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) for affordable generic medicines and AMRIT Pharmacy stores for affordable medicines and implants in hospitals.
The healthcare infrastructure strengthening is supported through multiple centrally sponsored schemes including National Health Mission (NHM), Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), and Pradhan Mantri Swasthya Suraksha Yojana (PMSSY). States/UTs implementing AB PM-JAY have further expanded the beneficiary base at their own cost beyond the central government's coverage.