‘Employers should recognize that there are other solutions there’
Despite the federal government’s continued rollout of the Canadian Dental Care Plan (CDCP), the program has several gaps that must be addressed, according to one expert.
Andrew Ostro, CEO and co-founder of PolicyMe, recognises the importance of the CDCP, noting that it meets a pressing need for many Canadians.
“In Canada, health care, in general, is public and free—paid through taxpayer dollars and subsidised by the government. And it's very much a universal right. Everyone should be entitled to health care, and we have a programme in Canada that supports that.”
However, “historically, dental has never been part of that program,” he says in conversation with HRD Canada.
“There’s clearly a strong argument for saying dental care should be a universal right, and everyone should have access to it.”
Ottawa revealed details of the CDCP rollout in late 2023. CDCP members who currently have coverage under the plan need to renew their coverage before June 1, 2025, for the new 2025 to 2026 coverage period.
While the CDCP provides meaningful benefits, many Canadians are left out due to its eligibility requirements, says Ostro.
Launched nationally in 2024, the CDCP offers dental coverage to low- and middle-income Canadians who do not have access to a private dental plan. Eligibility is limited to households earning under $90,000 annually, with full coverage only available to those earning under $70,000.
Ostro points out that this $70,000 income threshold “is a pretty low bar,” amounting to just $35,000 per person in a dual-income household.
But income isn’t the only barrier.
“Anyone who has access to any sort of private dental plan—whether they take it or not—they are not eligible. So if you're an employer and you have any sort of dental care included in your health and dental plan,... that immediately disqualifies the [workers] from being able to access the government CDCP.”
This eligibility rule could prompt some employers to reconsider offering dental benefits, especially if their workers would otherwise qualify for the government plan.
“The immediate implication would be, if I'm an employer, why would I pay for a benefit that, if I don't pay for it, the individual can get it for free through the government? So it's effectively costing me dollars," says Ostro.
“The immediate reaction would be, let's remove it from our plan. Either the employer will save some money, or we can put that money towards increasing other benefits in the benefits package.”
In January 2024, the Canadian Centre for Policy Alternatives (CCPA) called on the federal government to put an additional $1.45 billion into the CDCP. That’s because the plan is underfunded, said David Macdonald, CCPA senior economist, in his report. As it is, about 4.4 million uninsured Canadians will be excluded from the benefits in its full implementation without additional funding, he estimated.
Another issue is that some dental procedures are not covered under the CDCP. Additionally, the government’s reimbursement rates to dentists are significantly below the typical fees recommended by dental associations.
“That’s a problem because dentists can choose which patients they want to see. And even if they can't exclude these people… they can prioritise other patients because they’re able to charge more.”
All eligible Canadians can now apply to benefit from the CDCP, and the federal government previously launched an advertising campaign to raise awareness of the program.
Ostro says employers must understand they have choices when it comes to dental benefits.
“Employers should recognise that there are other solutions there.”
If the CDCP does not meet employee needs or is underutilised, exploring alternative dental benefits may be more effective.
For employers, “the most value they can have—in addition to covering some of these needs—is proper education to the employees on what to look for,” he says.
All dental care providers can provide care under the CDCP on a claim-by-claim basis without formally signing up, the federal government previously said.
