This article discusses the state and trends of health care in Armenia. It presents previous andcurrent health policies and focuses on future development options. The focus of Armenianauthorities and international donors is to emphasize the role of primary health care, which impliesproviding more resources to the outpatient care and establishing the Family Medicine at theprimary health care level. The Republic of Armenia is facing the challenge of improving theaccess to and the quality of the basic medical services to its poorest population. Technically thepoor are eligible to receive health care; however, insufficient public funds, the low quality of themedical staff and informal payments prevent them from getting adequate care. The articledescribes the negative effects of widespread use of informal payments in health care and possiblesteps to reduce it. It analyzes topics such as, feasibility of private and public health insurance,rationalization of hospital care, privatization of the health sector, the role of government andbudget allocation to health care.