Social health insurance safeguards people against health as well as financial burdens and is a potential method of financing health care. It has a prospective contribution in obtaining universal health coverage (UHC) in the coming years. It is evidenced that introduction of social health insurance results in reduced employment in the economy and increased out-of-pocket healthcare costs in a particular country but its broader value remains unknown. This paper aims to estimate the role of social health insurance on out-of-pocket payments in OECD countries. Using 62 years of panel data for 33 OECD countries, we have assessed the Random Effect, Fixed Effect, and Pooled OLS estimates. It has been found that social health insurance has a very small, but negative effect on out-of-pocket payments. Although these results are encouraging, it is suggested that financing healthcare through social health insurance should be accompanied by proper regulation along with other means of healthcare financing mechanisms.