Introduction (relevance). Currently, the problems of the functioning of the domestic healthcare system are among the most discussed in scientific literature. This is due both to the increasing adverse impact of the environment and working conditions on public health, and the rising cost of healthcare services, which is also determined by a number of reasons. All this draws special attention to the current healthcare model based on compulsory health insurance (CHI), which is its key element. Studying the mechanism of its functioning and its ability to accumulate funds for healthcare development is crucial for formulating directions to improve both the CMI mechanism and the healthcare model of the Russian Federation as a whole. Purpose of the study. To examine the functioning of the CHI mechanism and its financial characteristics. Materials and Methods: The study employed methods of system analysis, general scientific methods, generalization, analogy, and statistical analysis Results and Discussion. Compulsory health insurance, is the foundation of the modern healthcare model in the Russian Federation. However, its mechanism requires improvement in accordance with modern requirements. Based on the conducted research, a conclusion can be drawn about the expediency of retaining CHI as a key element of the healthcare model. At the same time, it is necessary to increase the role of the state and its instruments in healthcare, primarily in terms of financing. Conclusion. The modern healthcare model of the Russian Federation is a mixed one, concentrating both public and private funds. CHI is the central element for attracting the latter. However, for a number of reasons, the CHI mechanism cannot currently provide a significant increase in healthcare financing to a sufficient extent. Its improvement is needed, based on strengthening state regulation and financing.