BRUSSELS, June 18 (Reuters) - The European Commission said on Thursday it had approved an Irish scheme of levies and tax relief in the health insurance sector.
The European Union's executive approved the scheme, which is intended to decrease the risk differentials for health insurers between old and young, after amendments by the Irish authorities to make sure the insurers would not be overcompensated.
It involves private medical insurance, which is subject to special regulation in Ireland, and introduces tax relief for individuals, the amount of which increases with age.
"...The Commission continues to recognise the wide margin of discretion member states enjoy in the organisation of health services," EU Competition Commissioner Neelie Kroes said in a written statement.
"The Commission supports aid in the form of justified and proportional compensation linked to the performance of public services," she said. (timothy.heritage@thomsonreuters.com; +32 2 287 6801; Reuters Messaging: timothy.heritage.reuters.com@reuters.net))