The Labour Party has described a threat by the medical insurance company Bupa to pull out of the Irish market as a crude attempt at blackmail.
The British-based group has made the threat over proposals to make it compensate the VHI, which takes on older, unprofitable customers.
Bupa says it would lose up to €35m if required to pay risk equalisation and would be forced out of the market, thereby reducing consumer choice.
Labour party spokeswoman Liz McManus said Bupa knew the rules when it entered the Irish market and that the Health Minister and regulator should call its bluff.
The Health Insurance Authority was set to recommend on Friday to the Minister for Health Mary Harney that risk equalisation should be introduced.