The High Court has ruled Bupa Ireland must pay the multi-million euro costs of its unsuccessful challenge to the risk-equalisation scheme.
Mr Justice Liam McKechnie rejected the company's claim that it had acted in the public interest, as well as in its own private interest, in bringing its case.
Bupa said it would proceed with its Supreme Court appeal against the initial High Court decision. Mr Justice McKechnie granted a stay on payment of the costs, pending the outcome of the appeal.
The risk-equalisation scheme, announced by the Minister last year, would involve Bupa making payments, effectively to compensate VHI, for having a greater number of high risk, older and more expensive subscribers.
Bupa has contended that it would be forced to pay out €161 million in payments, mainly to VHI, over the next three years at a time when its projected profits would be around €60 million.
In dismissing the Bupa challenge last November, Mr Justice McKechnie said he accepted the State's evidence that, without such a risk equalisation scheme, there was a threat to the stability of the health insurance market.
He added that Bupa had entered the market knowing its regulatory framework.