As of literatures, the implementation of a given program is constrained by social, political, demographic and economic factors. But, to understand the extent of the constraints, the current performance of a program and shape future target area by learning from mistakes, well organized study is necessary to be undertaken. Thus, this paper is aimed to study the Determinants of Community Based Health Insurance program implementation in selected rural kebeles of Ebinat woreda in Amhara region adding to the available literatures previously done. Many people’s study was very limited to identifying participation factors but, this one also focuses on the implementation of the scheme along with identifying the threats of drop out of participants using component analysis. Thus, the target population in the study includes members and non-members. Binary logistic regression model was used to identify the factors related to the decision to be members along with factor analysis in identifying the issues associated with drop out of the scheme. Questionnaire of mixed nature along with focused group discussion is used and data has been collected from randomly selected households. The performance of the district in the membership into the health scheme has been found to be 65% and 71% in terms of renewal. After the logistic regression, sex of the household head, fatal disease, family size, disability, monthly income of the household (negatively), distance (negatively) and level of awareness(very good category) are found statistically significantly affecting the variation of the membership decision of households. Moreover, the factor analysis showed that both quality service delivery, awareness related and premium related issues are the bottlenecks for the implementation of the scheme. Based on these results, it is concluded that there are supply side and demand side factors affecting both the membership and drop out threats from health insurance scheme. Thus, it is recommended to take actions on statistically significant issues like distance from health center, very good awareness, fatal disease and the like to have better performance.