Travellers outside EEA to lose Icelandic health cover

People travelling to countries outside the European Economic Area from 1 January 2027 will no longer be insured against costs resulting from illness or accidents, under changes to Iceland’s Health Insurance Act, mbl.is reports.

The changes were approved by Alþingi, Iceland’s parliament, on 1 June. Travellers are advised to check their insurance rights with insurance companies and review the travel insurance provided by their payment cards.

The changes also mean that Icelandic Health Insurance will cover medical costs only at state-run hospitals within the EEA. In Spain, however, many hospitals are privately operated. Large numbers of Icelanders stay in Spain for months each year, particularly older people.

Travel insurance policies generally exclude medical costs related to pre-existing conditions. VÍS, for example, states that it does not cover costs arising from accidents, illnesses or diseases for which the insured person received medical care or treatment during the six months before paying the booking deposit.

Type 1 diabetes is cited as a common pre-existing condition not covered by the insurance, leaving individuals responsible for the costs themselves.