The chief executive of the health insurance company, Vivas, has said there should be no risk equalisation payments to the VHI until its dominance of the market is reduced.
Oliver Tattan told RTE's Morning Ireland programme that the current risk equalisation policy was far too draconian.
On Wednesday night, Health Minister Mary Harney introduced new legislation which removed an exemption which allowed new entrants into the health insurance market to operate for three years without compensating the VHI for its older customers base.
The Quinn Group last night confirmed it would go ahead with its takeover of health insurer Bupa, despite the Government's move.
A statement from the Quinn group said that it was 'baffled and dismayed' on the rushing through of the emergency legalisation.
'Our intentions at all stages in this process have been to bring much needed competition to a dysfunctional health insurance market and we feel the actions taken last night are unhelpful and unnecessary', CEO Sean Quinn said.
'In our view, the position taken by the VHI and now backed by this legislation, is untenable', he added. He added his company had the financial strength to fight the inequities imposed on it.
