The Minister for Health will brief the Cabinet on Wednesday on an application by the VHI for an 8.5 per cent rise in premiums from September.
In addition, Mr Martin will ask the Cabinet to endorse the conclusion of the Hanly review on medical manpower.
The discussion on the VHI application takes place before the deadline on Friday for Mr Martin to veto the price rise. However, he has already indicated that there is a "good chance" that the Government will accept the application.
Ministers will also be presented at the Cabinet meeting with the VHI's financial accounts for 2002, which show that the company is making substantial profits.
In what is seen as a first step towards privatisation, it has already sought discussions with the Department of Health on its commercial future.
Some informed sources said yesterday that the company recorded a profit last year of €40 million, although this could not be confirmed last night.
While the Government spokeswoman said several weeks ago that there was "concern" within the Government about the application, Mr Martin has indicated that he would give favourable consideration to the request.
The application last month followed an 18 per cent increase in premiums last year.
Mr Martin remarked at the time of the latest application that the 8.5 per cent increase being sought was minimal, given the rising cost of healthcare.
Such a rise would increase the cost of the VHI's most popular insurance product, Plan B, by €36 per year. The bill for a family of two adults and two children would rise by €99.66.
The Hanly report will be crucial to the Government's attempts to reform the entire health service. It calls for immediate negotiations to amend the contracts which underpin the working conditions of medical consultants.
It also recommends the downgrading of services in a number of smaller hospitals.
Maternity units and emergency services at several smaller hospitals would be axed in a radical reorganisation of the hospital system if the Government accepts the plan.
Such moves would be resisted locally, creating a political challenge for the Government. While The Irish Times has seen advance drafts of the report, the final version is not expected to be formally published until the autumn.