OBJECTIVES: The aim of our paper is to demonstrate how health-economics was introduced in Hungary into governmental decision making process on drug pricing and reimbursement. METHODS: Data were derived from the nationwide administrative dataset of the National Health Insurance Fund Administration (OEP), the only health care financing agency in Hungary. We carefully review the formal legislation and informal background papers related to this issue. RESULTS: The introduction of health-economics into governmental decision making is driven by the 105/89/EEC Transparency Directive of the European Union. Regarding the implementation of this EU directive, Hungary adopted a new regulation in April 2004 which defines that all application for drug health insurance reimbursement must be accompanied by a health-economics analysis. Upon the proposal of the Hungarian Health-Economics Association, the Hungarian Ministry of Health officially published a methodological guideline for conducting economic evaluation of healthcare interventions in Hungary. The National Institute for Strategic Health Research (established in 2004, the Hungarian counterpart of the NICE in UK) is responsible for reviewing the reimbursement application dossiers by preparing health technology assessment reports and health-economics evaluations. CONCLUSIONS: We can conclude that the implementation of the organizational framework of health-economics in Hungary was carried out successfully. However, the everyday operation of the new system should be carefully evaluated whether the new regulation is suitable for achieving the appropriate implementation of health-economics into governmental decision-making process.