Minister for Health Mary Harney will announce today whether she is prepared to introduce risk equalisation into the Republic's health insurance market.
Sources last night believed she would give the green light for risk equalisation, although there were suggestions it might not be implemented immediately.
Private health insurer Bupa is currently taking High Court action over the issue.
Risk equalisation would involve Bupa having to make payments to its State-owned rival, VHI, of about €30 million a year, although the payments would not begin until next year. Risk equalisation seeks to compensate the VHI for the older profile of its customer base.
Other companies in the market like Vivas will also have to make payments to VHI, but because Vivas is a newcomer it will have a longer period before it must start paying.
Bupa has mounted a strong campaign against the idea, claiming that competition will be seriously damaged.
A large number of protest calls have been lodged with the Department of Health from Bupa members, it is understood. Bupa has also warned that its future presence in Ireland could be threatened if risk equalisation is pushed through.
While Ms Harney's spokesman refused to comment on the content of today's announcement, a decision not to go ahead with risk equalisation would leave the regulator in the area, the Health Insurance Agency (HIA), in a difficult position.
In a recent study of the health insurance market it advocated introducing risk equalisation. The HIA has strongly emphasised that market stability could be endangered without risk equalisation.
Over the last few weeks Ms Harney has been receiving the views of health insurers.