The Dáil has passed new regulations that will result in a 20% reduction in future payments which independent health insurance companies must pay to the State-owned health insurer, Vhi.
QUINN Healthcare, which has taken over BUPA Ireland, has expressed disappointment that the regulations do not go far enough.
Speaking on RTÉ Radio's News At One, QUINN General Manager Colin Morgan said the dominant position of Vhi would still hinder competition.
However, this evening Vincent Sheridan, Chief Executive of the Vhi, said his company would be pressing the Government to reverse the changes.
He said any impact on the cost of insurance premiums would not be immediate but would be an issue in the future.
Vhi is the country's largest health insurer.
The risk-equalisation scheme sees independent health insurance companies compensating Vhi for its older customer base.
Earlier, Opposition parties protested to the bill being rushed through the Dáil in 25 minutes.
Fine Gael's Richard Bruton said it was the start of dramatic changes in health insurance.
Labour's Liz McManus said it was totally unacceptable while Sinn Féin's Caoimhghín Ó Caoláin said it was a farce and an insult to the Dáil.
It follows yesterday's publication of the Barrington Report on health insurance.
The Fine Gael Spokesperson on Health, Dr Liam Twomey, has said the only certain conclusion that could be drawn from the proposals is that premiums would start increasing at a rapid rate.
Dr Twomey said his biggest concern was the way community rating was being changed with regard to the different plans that were on the market.
Changes needed: Harney
However, the Minister for Health, Mary Harney, said the changes were needed. They will come into effect in July.
Among the other proposals being examined by the Government is to encourage people to take out health insurance at a younger age by loading prices for individuals who take out insurance later in life.
The Department of Health is to appoint legal and corporate advisers to assist the Vhi in finding enough reserves to meet the new target.
