The IMO has warned of 'chaos' in the medical card services if the Government targets €133 million in savings in the coming year - a €20 million increase on the amount originally targeted in the budget.

IMO GP chairman Dr Ray Walley was speaking following the publication of confidential communications sent by the HSE to Health Minister James Reilly.

In the letter, reported in the Irish Times, HSE Director General Tony O'Brien, warns the Minister that proposed cuts in medical card spending for next year (€133m) are being taken against the advice of the HSE and the Department of Health'.

The IMO's statement comes amid growing speculation about the extent of medical card scheme cuts to be contained in the HSE's service plan, expected to be published within the next two weeks.

Dr. Walley said the HSE's communication on the medical card cuts reflected a growing recognition on its part that enormous hardship was going to follow the Government's decision to target these savings in spending on medical cards.