It would cost €160 million to extend the medical card to children under 18, just €10 million more than the amount spent on the suspended PPARs computer system, the Dáil was told.
Sinn Féin's health spokesman Caoimhghín Ó Caoláin called on Taoiseach Bertie Ahern to extend the medical card to those under 18.
During leaders' questions he asked, "how can the Taoiseach defend a system whereby money that could be spent on providing essential medical cover and care for all children is instead wasted on consultants and IT systems that do not work? When will he prioritise need, end waste and stop rewarding greed?"
Mr Ahern pointed out that "in most instances where money has been spent to try to improve systems, it is because they are not effective and need to be enhanced".
Changes had already been made to the medical card system and some 140,000 new cards were issued in the last year.
The Taoiseach added Minister for Health Mary Harney had "made changes to take net pay into consideration, a measure that helps many families with children. The Government would continue to support the provision of quality housing and other programmes to help those who are disadvantaged."
Referring to proposals launched on Tuesday by the children's charity Barnardos to combat child poverty, Mr Ó Caoláin said it was "essential reading" for the Minister for Finance in the lead-up to the budget.
The Sinn Féin TD said that in a Dáil reply the Minister for Health had told him that extending the medical card to under-18s would cost €160 million, €10 million more than the PPARs system that was suspended.
"It would cost in the region of €151 million, a comparable figure, to fund the extension of paternity benefit and maternity and paternity leave over a three-year period up to 2008."