The objectives usually cited for cost-sharing for drugs are to: (1) promote efficiency; (2) foster equity; (3) promote decentralization and sustainability; (4) foster private sector development; (5) promote consumer satisfaction, and (6) generate revenue.

The potential advantages of cost-sharing are:

• Revenues collected are added to government budget, not a substitute for government allocation
• Promotes referral system
• Encourages rational drug use by reducing unnecessary demands for health care and drugs
• Risk-sharing among the well-off who are able to pay and the poor
• Decentralization by local retention and control of money collected
• Promotes private sector development
• Consumer satisfaction with more availability of drugs and improvement of quality of care

Common problems and disadvantages are:

• Collection cost greater than revenues generated due to inefficient management
• Discourages the poor from primary care, if they are unable to pay for the services
• User charges will increase the burden on the poor rather than the well-off
• No improvement in service quality
• No improvement in drug availability
• Encourages over-prescribing, if more drugs lead to more revenues