Prescription Drug Coverage
Written in plain language for general understanding. This is educational content, not legal advice. Based on Icelandic Acts of the Althingi, statutory instruments, and official guidance.
Icelandic National Law
What is this right?
Iceland subsidises prescription drug costs through a tiered copayment system over a rolling 12-month period:
General population:
- You pay 100% up to ISK 22,800, then 40% to ISK 29,680, then 15% to ISK 36,730, then 7.5% to ISK 62,000.
- Beyond ISK 62,000 in annual out-of-pocket costs: 0% (fully subsidised).
Reduced group (age 67+, disability pensioners, children, persons under 22):
- You pay 100% up to ISK 11,400, then 40% to ISK 16,840, then 15% to ISK 21,640, then 7.5% to ISK 41,000.
- Beyond ISK 41,000: 0% (fully subsidised).
Generic reference pricing: Subsidies are calculated from the lowest-priced generic. If you choose a brand-name alternative, you pay the difference.
When does it apply?
- You have been prescribed medication by a doctor in Iceland.
- You are insured under the Icelandic health insurance system.
What should you do?
- Present your prescription at any pharmacy — the copayment system applies automatically.
- Ask the pharmacist about generic alternatives to reduce your out-of-pocket costs.
- Track your annual spending — once you hit the cap (ISK 62,000 or ISK 41,000), remaining prescriptions are free.
What should you NOT do?
- Don't assume all medications are covered — some may not be on the reimbursement list.
- Don't skip medication due to cost — the system is designed to cap your exposure, and you may already be near the free threshold.
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