The European Commission has authorised, under EC Treaty State aid rules, an Irish scheme of levies and tax relief in the health insurance sector. The objective of the scheme is to promote intergenerational solidarity by decreasing the risk differentials for health insurers between old and young customers. The Commission concluded that the measure was in line with the EU Framework for State aid in the form of public service compensation and as such compatible with Article 86(2) of the EC Treaty. In particular, after the Irish Authorities agreed to amend the scheme, the Commission was satisfied that none of the insurers would be overcompensated for the discharge of the public service. The scheme is a temporary replacement for, and very similar to, the previous Risk Equalisation Scheme, which was annulled by the Irish Supreme Court.