As per a report by Central Bureau of Health Intelligence, only 21.6 crores people, less than one-fifth of India's population, are covered under health insurance. This data was compiled under National Health Profile 2015.
This poor health insurance penetration coupled with low public spending has reflected in India's high out-of-pocket health expenditure. In urban areas, 75% of out-of-pocket expenditure is on medicine, while in rural area this statistic rises to 80%. The doctors' fee varies between 11-14% whereas diagnostic tests account for 7-8% of out-of-pocket expenditure.
The public expenditure on health was 1.08% of GDP in 2012-13, which is consistent since 2009-10. This number makes India stand at the lowest position among the South-East Asian region (except Myanmar) and BRICS countries.
In order to cater to the growing demand regarding health, government agencies and departments like the Planning Commission had suggested the need for robust universal health insurance.