CANADIAN DENTAL CARE PLAN (CDCP)
What is the “Canadian Dental Care Plan?” (CDCP)
In the 2023 Budget, the federal government provided further details about the Canadian Dental Care Plan (CDCP), aimed at offering dental care benefits to uninsured individuals in Canada with a household income of less than $90,000 annually. For those with a household income below $70,000 per year, the plan will provide complete coverage.
By the end of 2023, the plan will start providing coverage to seniors and persons with disabilities and, by the end of 2025, the CDCP will be fully implemented to cover all uninsured Canadians.
Health Canada will administer the CDCP, with support from a third-party benefits administrator.
Canadians with access to dental coverage or benefits will not be eligible for CDCP.
What does this mean for Employers?
CDCP will be available to uninsured Canadians with an annual household income of less than $90,000 and with no co-pays for those with a household income under $70,000. With the implementation of CDCP, the federal government aims to establish a sustainable and effective long-term initiative that delivers excellent oral health care to those in greatest need, without affecting the current oral health care system, including employer-provided benefits, which constitute the primary source of dental care for most Canadians.
Changes to tax reporting with CDCP
With the introduction of the Canadian Dental Care Plan (CDCP), employers are required to report on an employee's T4 statement regarding whether an employee, former employee or any of their dependents (starting December 31st 2023) have access to dental insurance or any form of dental coverage, which includes Health Care Spending Accounts provided by their employer.
This reporting will be mandatory beginning the 2023 tax-reporting cycle and will to be required on an ongoing basis.
Considerations
Providing health and dental benefits remains instrumental for employers in attracting and retaining top talent. The CDCP is specifically designed for Canadians without existing private dental insurance. Even post-launch, a significant number of employees will continue to value the comprehensive and extended dental benefits provided by their employers, as many households may not meet the eligibility criteria for CDCP.
Also, employers currently have the incentive of showing dental benefits as a deductible expense for business. The Canadian Life and Health Insurance Association is proposing a 35% tax credit for small businesses as a strong advantage to keep their existing insurance plans in place for their employees, however, this is not official yet.
CANADIAN DENTAL BENEFIT (CDB)
What is the “Canada Dental Benefit?” (CDB) – Current plan for Children under 12
The CDCP is not planned to be fully implemented until 2025, so as an interim measure the federal government launched the CDB.
The CDB offers tax-free, upfront payments to assist in covering dental expenses for children under 12 who do not have access to private dental insurance and whose annual household income is below $90,000.
The Canada Revenue Agency (CRA) manages the distribution of payments, using adjusted income to assess eligibility and determine the benefit amount. To qualify, individuals must have filed their taxes for the preceding year.
Benefit Amounts Canadian Dental Benefit
Adjusted Family Net Income | Amount |
Less than $70,000 | $650 |
$70,000 to $79,999 | $390 |
$80,000 to $89,999 | $260 |
$90,000 or more | Not Eligible |
This program provides a maximum payment of $650 per eligible child per year for two years.
We're here to help!! Should you have any inquiries, please contact Regroup Beyond Benefits at 1-888-824-0010 or via email at servicenow@regroupbenefits.com.
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