The Taoiseach Enda Kenny confirmed the coalition accepts an ESRI report and will not proceed with their long-standing plan for Universal Health Insurance.

Mr Kenny says the Government is still committed to universal health care, paid for my universal insurance, but on a more affordable basis.

There have been rowdy scenes in the Dáil - with Fianna Fáil leader Micheál Martin accusing Mr Kenny of saying anything to get elected, adding that the truth does not matter.

And the Sinn Féin leader Gerry Adams says it is another broken promise from the Government.

The health minister says other forms of Universal Health Insurance will not now be introduced until at least a third term of the current government.

Leo Varadkar was responding to analysis by the ESRI, which shows that the government model could cost the state up to €2bn a year to run.

The government says the decision to abandon Universal Health Insurance was based on an ESRI report suggesting it would add to healthcare costs by up to €2bn.

The minister says that this particular model is simply too expensive, so other forms of insurance will have to be designed instead.

But he says the model analysed by the ESRI is simply too expensive and will now never be implemented.

While the Tánaiste Joan Burton says money that would have been spent on Universal Health Insurance will now be used to upgrade the overall health system.

It will be a number of years before UHI can be implemented as an affordable measure, according to Ms Burton.

She says their focus will now turn to what is possible.

The average cost of the proposed scheme for an adult could be up to €2,500 per person, depending on what is included in the cover.

Senior researcher at the ESRI, Dr Maev-Ann Wren, says a new approach is needed.