1. Achieving improved health outcomes through fiscal spending would enhance human capital in Kosovo. The country lags peers in terms of amounts allocated for healthcare and on the effectiveness of public spending to improve health outcomes, reflected in weaker health outcomes compared to peers.2. Appropriate health financing arrangements can promote progress towards universal health coverage (UHC). Simply, UHC means that all people have access to the health services they need, when and where they need them, and without causing financial hardship. Health financing arrangements are important in achieving UHC because they define how revenue is generated to pay for health services, how risks and costs are pooled across people, and how goods and services are purchased. Although public health services in Kosovo are envisaged to be free or subject to small user fees, in practice services and drugs are usually not fully available. As a result, patients incur significant out-of-pocket (OOP) expenditures which exacerbate existing income inequalities. Under such circumstances, sick people often carry the burden of funding their treatment. This financial burden can be particularly severe for the poor, or for people with chronic conditions who need medications on a regular basis.