Importance The subject of this paper is the system of financial and economic relations in the national health system transformation process. Objectives The paper aims to analyze the efficiency of the national public health system to identify its advantages and disadvantages, and offer some recommendations for further reform. Methods For the study, we used the normative and complex approaches, general scientific and special methods of scientific knowledge like observation, grouping, sampling, comparison, and generalization. Conclusions The present national health system is focused on the public health services access and quality. However, the modernization increases a financial burden on the compulsory health insurance system and insured citizens. It is necessary to return to the budgetary financing to strengthen the insurance nature of the compulsory medical insurance. The public health model needs to be introduced through a modernized Semashko public health insurance system. An important condition for the successful functioning of the revitalized health system is the abandonment of Western countries' experience in favor of the development of insurance administration institution, which can be described as part of social and economic regulation with built-in feedback.
Keywords: insurance administration, compulsory health insurance, health care reform, financing
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