The implementation Of National Social Health Insurance by BPJS-Health that has been started on January,I, 2014 gives an impact to integrating local health insurance into national scheme.This study aims to describe implementation of local social health insurance as a basic in formulating policy model whichallows integration of local health insurance, particularly in the area of management, benefit packages, and government payed member in the frame of health decentralization policy. Study design is embeddedmulticases, using case study interpretatif method. Primary and secondary data were collected by explorativeapproach. Study area includes implementation of social local health insurance at 33 provinces, conducted in2013-2014. Results of this study show a gap in understanding and capacity of local authorities in managinglocal health insurance; various characteristics of local social health insurance in term of local monetarycapacity, benefit packages, management, and government payed member. This study recommends toaccomodate public health effort financing into benefit packages scheme, perception equalizing betweennational and local policy maker in understanding policy steps, and giving more flexibility forprovince/district/municipal in local social health insurance integration policy.