VHI's board of directors is reportedly planning an emergency meeting later this week to discuss the Government's decision not to introduce risk equalisation in the Irish health insurance market.
Risk equalisation is a scheme that would have required BUPA to make payments to its state-owned rival, the VHI.
According to the Health Insurance Authority, these payments are necessary because VHI offers insurance to everyone regardless of age, while BUPA is allowed target the more lucrative younger market.
Despite this, the Tánaiste and Minister for Health, Mary Harney, said yesterday that she would not introduce the scheme until the Government had at least started the process of converting VHI to a commercial state body.
This morning's reports said VHI may be forced to increase its charges as a result of her decision.