The Health Minister Leo Varadkar says there will be a secondary medical card test for those who do not meet the criteria of the means test.
Mr Varadkar has previously promised to reform the discretionary medical card system, after a report called for greater sensitivity in the way cards are allocated.
He has also said the Department of Health will not look to withdraw any recently reinstated discretionary medical cards.
A report on the system found that assigning medical cards based upon illness was impractical, due to the range of illnesses that might be under consideration.
Under the proposed new system, a doctor will perform a second assessment of a candidate who fails the means test which would be based on their individual medical requirements.
Mr Varadkar told the Pat Kenny Show here on Newstalk that the new system will be more compassionate.