Talks are to begin at the end of August between the Minister for Finance, Mr McCreevy, and the Minister for Health, Mr Martin, over the latter's demands for significant increases in medical card income threshold limits.
Under current health board rules, single people who earn less than €142.50 a week, and married couples with a joint income of less than €206 a week, are eligible for the medical card.
However, the number qualifying for the cards has dropped by nearly 100,000, to 1.15 million, since Fianna Fáil and the Progressive Democrats took office after the 1997 general election.
Because of growing numbers of jobs and higher incomes, the numbers fell by 55,000 since the 2002 general election, even though Fianna Fáil had promised during that election campaign to increase the total by 200,000.
Last night a spokesman at the Department of Health told The Irish Times:
"The way to increase numbers would be to extend the incomes thresholds.
"The Estimates talks start in August. The Minister intends to prioritise action on the thresholds."
However, he refused to indicate the size of the threshold limit to be sought by Mr Martin: "It is too early to say that. That will be something for the negotiations," said the Department's spokesman.
Given that Mr Martin could be moved in the Cabinet reshuffle in the autumn, his declaration will be seen as an attempt by him to win favour with Fianna Fáil TDs who want to see higher State spending.
In an interview with the Sunday Times yesterday, the Minister said that the economy had been brought back "on an even keel" after the difficulties of the last 18 months.
Given this, he said, it was time for the Government to focus on its social agenda, which would mean channelling more funds into health, education and social welfare.
"The revenues for the future are showing a greater degree of buoyancy and I think the issue now is: are we in a position to refine and modify our policies? I think we have to focus in on health, education and social welfare," he said.
However, Labour Party TD Ms Liz McManus said the Minister's promise was worthless given that he had been consistently beaten in negotiations for extra cash with Mr McCreevy.
Urging the Taoiseach, Mr Ahern, to become involved, she asked: "Does he support the case for additional funds being made by the Department of Health or does he endorse the parsimonious approach of Minister McCreevy?"
The Government's failure to honour its promise to add 200,000 people to the medical card list "has been one of the most shameful betrayals of the electorate by Fianna Fáil and the PDs.
"It is ridiculous that a single person existing on the national minimum wage will not even qualify for a medical card, and it means that many low-income families are facing a crippling financial burden.
"But even if he brings this proposal to government, Minister Martin is unlikely to get anywhere unless there is a fundamental change of attitude by Minister McCreevy," she said.
Three months ago the Minister sought Cabinet approval for €50 million extra to open up completed hospital units that have lain idle because of staff shortages.
