The Finance Minister is being warned that the public health system will face increased pressure as a result of the introduction of changes to tax relief on health insurance.

It is estimated that nearly 1.4 million people could be hit with a €100 euro increase in their health insurance plans on the back of a cap to be introduced on premiums which will result in the majority of customers dropping their cover.

Dermot Goode of healthinsurancesavings.ie told The Pat Kenny Show that the budget has been bad news for the health sector overall.

While the Chief Executive of Insurance Ireland, Kevin Thompson, says he supports the government plans to get the economy back on track - but that the adjustment to tax relief on insurance "doesn't make sense".

He says it will affect almost all Irish policy holders.

"When you consider that the average adult health insurance premium is 1,500 per annum per adult, and tax relief now has been capped at 100 euro - that equates to an extra 100 euro per annum per adult premium" he said.

"Generally we have two million people covered by health insurance within the State, 1.4 million of those are adults - of which 90 percent of these will be affected i.e. 1.2 million adults" he added.