The VHI says it is very disappointed with today's Supreme Court decision to strike down the risk equalisation scheme.
The VHI had been in line to receive a payment of around €40m if BUPA lost its challenge to the scheme, which was designed to ensure elderly and sick people do not have to pay higher premiums for health insurance.
In a statement today, the company says the decision may have serious consequences for older and chronically ill members of society.
Former VHI chief executive Vincent Sheridan says the Government will now have to examine new ways to ensure so-called community rating in light of the judgement.
Labour TD Jan O'Sullivan is calling on the Government and the Minister for Health to take immediate action to reassure the public and even recall the Dail to introduce new legislation if necessary.