Healthcare in Iceland

Healthcare in Iceland is universal. The healthcare system is largely paid for by taxes (85%) and to some extent by service fees (15%) and is administrated by the Ministry of Welfare. A considerable portion of government spending is assigned to health care. There is almost no private health insurance in Iceland and no private hospitals.

Healthcare providers in Iceland fall into one of the following legally defined categories of healthcare providers:

Health care system in Iceland relies on general taxation, instead of local funding. This is affected by the Nordic welfare state model, in which public service is heavily funded through taxation to support the general public, in order for the population to have equal access to health care and welfare system. Although local authorities have limited influence over the national health care system, Iceland has recently adapted to similar structures to other Nordic countries, implementing decentralized structure by dividing the country into seven local health care regions. The health care regions were implemented to promote cooperations between institutions, and to provide quality care through regional provisions. However, this has not affected the financial responsibility of the central government. Although health care is generally funded through taxation, some out-of-pocket expenses are still required, such as service fees. Iceland does not operate its health care system based on financial need, but some disadvantaged groups, including disabled and elders, generally receive discounts on personal health expenses.

As of recently, out-of-pocket expenditure has increased significantly, resulted in approximately 76% increase in private expenditure from 1995 to 2010. By 2011, Iceland's out-of-pocket payments have become an important financial source for the universal health care system, which made up 18.2% of total health expenditures. The general population, however, still showed overwhelming support for governmental funding and providing the health care system at the same time. Through a research survey conducted in 2013 focused on Icelandic adults, in which 94% of the respondents want the government to spend more on public health care, and 81% of the respondents prefer and supports primary health care to be provided by the government. Although the government aimed to provide easy and accessible health care to all population regardless of income and social status, there are still some problems faced due to benefits given to disadvantaged groups. Some people without additional help face postponement or even cancellation to medical treatment.

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