For the United States, this Agreement applies to title II of the U.S. Act. It also applies to the corresponding tax laws (FICA and SECA) and any regulations pertaining to those laws. The Agreement does not apply to Medicare provisions (sections 226 and 226A of the U.S. Act). It also does not apply to provisions for special payments to uninsured individuals age 72 or over under section 228 of the U.S. Act. Persons to whom this Agreement applies who qualify for Medicare hospital insurance or age-72 payments without application of this Agreement may still receive such benefits.

Although this Agreement does not apply for the purposes of entitlement to Medicare, a worker who has coverage only under the Icelandic system because of Article 5 of this Agreement will be exempt from health insurance contributions under FICA and SECA. This is in addition to the worker's exemption from U.S. retirement, survivors, and disability insurance contributions.