The objective of this research is to examine the CBHI practice and challenges in the NorthrnWollo Zone of Meket Woreda. An in-depth interview and open-ended questions were utilized torncollect quantitative data from a simple random sample of 287 respondents (158 males and 129rnfemales). Qualitative information was acquired from a variety of sources as well (IDIs, KIIsrnand FGDs). Descriptive and inferential statistics were used to assess and display quantitativerndata, while thematic analysis was used to evaluate and present qualitative data. Findings ofrnthis research disclosed that majority of the surveyed rural households (80.5%), prior tornenrollment in the scheme, were covering their health expenses through out of pocket. Some ofrnthe reported restrictions include gaps in program design and execution, insufficient beneficiaryrnparticipation in CBHI administrative activities, insufficient medical supplies, long referralrnprocedure, and unsatisfactory service delivery by health facilities. According to the findings,rnthe CBHI program's current practice in the research area resulted in a significantrnimprovement in improved healthcare provision to rural families despite increased strain onrnhealth experts. Gender of the household, level of education/literacy, and family size werernstatistically significant at 0.05. The study would contribute to narrow research gaps, asrnfeedback for program implementation, and functioning as a source of information or referencernfor practitioners -+in the study area