Medical Cost Insurance

Medical treatment and medication are expensive, and few people can afford to pay for them out of pocket, especially if illnesses persist for an extended period. Public health insurance covers a significant portion of medical and medication costs, but to qualify, you must have had legal residence in Iceland for six months or more. Those moving to Iceland, both foreigners and Icelanders returning after living abroad, therefore need to secure separate insurance for the first six months.

Medical Cost Insurance provides comparable coverage to public health insurance under the Social Security Act. It covers the portion typically paid by public health insurance for medical and medication costs, once the deductible has been met.

This insurance is a short-term policy valid for six months, specifically designed to bridge the gap from your arrival in Iceland until you gain rights under the Social Security Act.

Those who have had legal residence in an EEA country, Switzerland, the Faroe Islands, or Greenland and were covered by public health insurance in those countries can transfer those rights to Iceland. For more details, visit the website of the Icelandic Health Insurance.

• If Medical Cost Insurance has been purchased but a planned trip to Iceland is canceled, it must be reported via email to sjova@sjova.is before the insurance period begins. The premium will then be refunded, minus a 5,000 ISK minimum premium.
• The insurance period starts as soon as the individual who has completed the application and paid the premium arrives in Iceland. It ends when the person gains access to public health insurance or leaves the country, but no later than six months after arrival.
• The insured amount under Medical Cost Insurance is 2,000,000 ISK.
• The deductible is 50,000 ISK for total costs covered by the insurance, in addition to the costs patients are required to pay under applicable laws and regulations.
• Foreign nationals applying for a residence permit in Iceland must provide confirmation that they have health insurance.

The price, or what we call the premium for Medical Cost Insurance, is a minimum premium for a period of up to six months. It is determined by the age of the insured individual.