Benefit incidence analysis (BIA) is a method used to assess how government spending and subsidies are distributed among different socio-economic and demographic groups, not only in the context of healthcare but also in other social sectors like education. This chapter explores the rationale and development of BIA, outlining various approaches to conducting the analysis and demonstrating the essential steps involved. It highlights the implications of BIA findings for health financing policy development and includes case studies from different contexts to illustrate its practical applications. In the context of government-funded health insurance (GFHI) schemes, BIA can be used as an exercise to evaluate the equity implications of such programs.