The Department of Health has set out plans to replace the E111 health insurance form with a new "smart card".

Launching a consultation on the proposals, health minister John Hutton said the new card should be introduced by the end of 2005.

The new health insurance card will be used by European citizens to prove their entitlement to free or reduced cost emergency medical treatment during temporary stays in other European countries.

It will cover the 25 European Union states plus Iceland, Liechtenstein, Norway and Switzerland.

Thirteen countries have already begun introducing the card, while the remaining 16 have been granted extra time as they currently lack a national health card systems which could be adapted to the new European model.

Under the proposals, the card will not hold any electronic or clinical data, but will show name, date of birth and a personal identification number.

"The government is committed to introducing the new European health card by the end of next year and ensuring that it will be easier to apply for and easier to use," said Hutton.

"Until December 31, 2005 UK citizens can continue to use E111 forms when they travel to any of the EU member states."