Skip to main content

11th June 2026

Extensive changes to the law regarding health insurance and Iceland Health

On 1 June, Alþingi approved extensive amendments to the law regarding health insurance and Iceland Health, which will take effect for the most part on 1 August 2026.

The aim of the changes is, among other things, to strengthen the role of Iceland Health as a cost analyst and purchaser of health services, strengthen data-driven decision-making, improve monitoring and promote more efficient use of resources in the health care system.

Among the main changes are:

  • The waiting time for health insurance is shortened. This means that those who move from countries outside the EEA have to wait three months for health insurance, after they transfer their legal residence to the country. The waiting time used to be six months.

  • Those who travel to countries outside the EEA after 1 August will not be insured against costs they may incur due to illness or accident. Travellers are advised to check their insurance rights with insurance companies and check their card insurance.

  • The Act emphasises that the decisions of the Iceland Health shall be based on evidence-based knowledge and professional and economic assessment.

  • Iceland Health will be given increased powers for data collection and monitoring to ensure correct implementation and payments.

  • New provisions strengthen the institution's powers for cost analysis, contract monitoring and service-related financing.

  • Authorisations to use special financing models for payments for health services will be clearer.

  • Provision is made for increased coordination of information, registration of waiting lists and sharing of data for the benefit of better service and monitoring.

  • Increased emphasis on digital services, electronic communication and secure handling of personal data.

  • The Board of Iceland Health will be abolished.

The Act can be found here (only available in icelandic): 1257/157 lög í heild: sjúkratryggingar og ófrjósemisaðgerðir | Þingtíðindi | Alþingi