Icelandic Health Insurance undergoes administrative changes amid ongoing audit by National Audit Office

The Icelandic Health Insurance (Sjúkratryggingar Íslands) is undergoing significant administrative changes amidst an ongoing audit by the National Audit Office. This audit commenced in May, and as part of the restructuring, the institution’s independent oversight department has been dissolved.

The oversight division, operational for just three years, was established in response to criticisms regarding the management of public funds concerning health insurance, following a 2018 report. Its responsibilities will now be integrated into the legal department of the agency. The director of Sjúkratryggingar, Sigurður Helgi Helgason, has refrained from commenting on the situation, including inquiries about the reasons behind these changes.

The past few years have been tumultuous for Sjúkratryggingar. The previous director, María Heimisdóttir, resigned at the end of 2022, citing chronic underfunding as a reason that made it impossible for her to ensure the agency’s effective operation. In her resignation letter, she expressed her struggle to secure an operational foundation that would allow the agency to fulfill its legal obligations and offer competitive salaries.

Under her leadership from 2018 to 2023, the oversight department was created to ensure financial accountability among healthcare service providers. However, María has not provided comments regarding either the establishment or the dissolution of this oversight body.

Recent scrutiny has included audits of private healthcare providers, notably examining whether a particular clinic has overcharged the Icelandic state by millions. The outcomes related to this investigation have not been disclosed by Sjúkratryggingar.