Despite potential benefits from Medicare, many Filipinos are indifferent, if not hostile to the program due to the perceived widespread corruption and red tape in the processing of claims. Hence, economic evaluation of Medicare is necessary for the identification of the strengths and weaknesses of the program’s design. This is also indispensable for the determination of its unintended impacts to the population. However, due to data limitation, this study narrows the objective by concentrating on the identification of the cross-subsidies occurring within the Medicare population through regression and the distribution of the burden of the Medicare contribution through incidence analysis.