The masters’s final work is written in Lithuania and consist of 80 pages, 20 Figures, 14 Tables, 38 References, 4 Appendixes. Research object: health insurance system in Lithuania. Research subject: health insurance. Research aim: to evaluate the system of health insurance in Lithuania and to present it’s development in perspective. Objectives: to analyze the theoretical aspects of health insurance and development of health insurance system in Lithuania, to fulfill the analysis of the accumulation of the income of Compulsory Health Insurance Fund Budget and distribution of the already accumulative finance, to define the factors determining the variations of income and expense; to provide the recommendations for the development of health insurance system in Lithuania. Research methods: analysis and synthesis of literature, logical analysis and synthesis, vertical analysis, methods of graphic modeling and forecast calculations. After studying the legislations of the Republic of Lithuania, scientific research works by various authors on the subject of health insurance in Lithuania, the analysis and evaluation of health insurance system as well as recommendations for the development of health insurance system were performed.