OBJECTIVES: The aim of this study is to analyse the small are inequalities in the health insurance reimbursement of drugs in Hungary. METHODS: Data derives from the central database of the Hungarian National Health Insurance Fund Administration (OEP) covering the year 2003 and containing all the drug reimbursement information from the whole country. For the analysis we used three different kinds of drug expenditures according to the source of funding: health insurance reimbursement (paid by OEP), maximum reimbursement for socially handicapped (coming from state budget), co-payment of patients (paid out-of-pocket of patients) for subsidized drugs. The statistical analysis was carried out with SPSS version 12.01. Small areas refer to the postal code (zip code) districts of Hungary and the patients were assigned to small areas according to their permanent address. The Geographical Information system (GIS) analysis was carried out by the MapInfo Professional software version 7.5. RESULTS: The health insurance reimbursement of drugs paid by the National Health Insurance Fund Administration is significantly higher (p<0.05) in the southern and eastern part of Hungary. The maximum reimbursement for socially handicapped paid by the National Health Insurance Fund Administration is also significantly higher (p<0.05) in the eastern part of Hungary. The co-payment of patients is significantly higher (p<0.05) in the western and central regions of Hungary. The results are presented on GIS maps also. CONCLUSION: The GIS analyses help to identify the geographical inequalities of the drug expenditures coming from different sources. In the more developed regions (western and central regions) the willingness and ability to pay the co-payment is higher. In the less developed regions of Hungary (northern and eastern regions) the people more rely on the reimbursement for socially handicapped financed from the state budget.