The limits will be increased to €550 per week for a single person, up from €500, and to €1050 for a couple, up from €900. This measure will be the first increase to the limits since they were last reduced six years ago.
The changes are part of a number of measures announced by Minister for Health, Stephen Donnelly, after funding was approved by the Cabinet.
There will also be a reduction in the Drugs Payment Scheme threshold by €10, bringing it to €114 and prescription charges for all medical card holders will be reduced by 50 cent.
Announcing the measures Mr Donnelly said the changes will benefit people across society, from young to old, across single people and families.
"This measure will not only ease the financial burden on up to 56,000 people over 70, but it will encourage them to seek medical attention sooner rather than later. This will help them to remain healthier and live full active lives for longer.
"These medical cards will be of immense benefit to many older people this winter and for many years to come," he said.
“The reduction in the Drugs Payment Scheme threshold, and the reduction in prescription charges for all medical card holders will support over a million people. These measures will benefit people across society, from young to old, across single people and families.
"This brings us closer in our aim to have affordable access to healthcare for everyone,” Minister Donnelly added.
