Reykjanesbær’s municipal council is calling for a review of state payments for ambulance services in Suðurnes after a financial assessment forecast a funding shortfall of ISK 48 million for 2026, Iceland Review reports.
The council unanimously approved a statement asking the minister of health and Iceland Health Insurance to ensure that reimbursements cover the service’s actual costs. The review identified a shortfall of ISK 14 million in 2025, putting the projected deficit for 2026 at more than three times that amount.
Reykjanesbær operates ambulance services alongside its fire service. The municipality says sharing staff, facilities and equipment makes the arrangement efficient and saves the state approximately ISK 120 million annually. Despite those savings, it says the state’s contribution has fallen while demand and operating costs have increased.
The council pointed to rapid population growth in Suðurnes and an increasing need for emergency care. The region includes Keflavík International Airport as well as growing communities, giving its ambulance service a role in caring for both residents and travellers.
The municipality’s argument centres on who should meet the cost of providing that coverage. It says ambulance provision is a statutory responsibility of the state and that the current reimbursement arrangement does not reflect what the service costs to run.
The council is seeking a review of the funding arrangement before the forecast deficit deepens. Its request asks the health authorities to address the difference between state payments and the costs identified in the financial assessment.