The Health Service Executive (HSE) has published its Service Plan outlining the need for cuts of over €1 billion next year.
However it has slashed its targets for savings from cutbacks to medical cards.
The agency now expects to save just €23 million from examining the cards currently issued. This is down from €113 million announced on Budget Day.
But the HSE is warning that it cannot stand over proposed payroll savings of €108 million and that more funding could be needed.
Health Minister James Reilly took questions on the HSE Service Plan in the Dáil this morning from Billy Kelleher of Fianna Fáil and Sinn Féin's Caoimhghín O'Caoláin.
The Health Minister said earlier that he knew from budget day that he could never deliver up to €133 million in savings from medical cards.
On budget day, proposed cuts to health funding of €666 million were announced. But the HSE service plan will not require this level of cuts.
This is mainly because the plan to save the €113 million by slashing medical cards has been reduced.
Some of the shortfall will be made up by the Department of Social Protection not having to pay dole, since more people are working.
Minister Reilly says 2014 will be a challenging year for health, but he is determined that wherever possible services will not be cut.
