Amid rising concerns from the Canadian Dental Association (CDA) about the Canadian Dental Care Plan (CDCP) eroding private insurance, Health Canada says the federal plan is not intended to replace employer-sponsored benefits.
“The CDCP was designed to help those who currently have no access to dental insurance, not to replace current employer benefits packages they offer employees as part of their competitive compensation packages,” Health Canada told Oral Health Group.
May 29 marked the launch of the final phase of the CDCP, allowing eligible individuals aged 35 to 54—the last cohort—to apply. While the CDCP aims to help nearly one-third of Canadians without dental insurance access oral health care, critics including the CDA warn it could negatively impact the two-thirds who rely on employer-sponsored dental benefits.
However, Health Canada told Oral Health Group that it expects the opposite from happening.
“We anticipate that, in most cases, employer-sponsored insurance will be maintained by private businesses as a means for recruitment and retention of their employees,” Health Canada said. “Private businesses should not be cancelling their dental plans as a result of the CDCP.”
Related story: Changes, challenges, opportunities and the CDCP
‘Unintended consequence’
However, the CDA says the CDCP could have an “unintended consequence” of “employers dropping or reducing their sponsored dental benefits for employees who qualify for the CDCP.”
After Mark Carney was sworn in as Canada’s 24th prime minister on March 14, the CDA released its federal election policy platform. It emphasized protecting employer-sponsored dental coverage, increasing federal investment in oral health care, and addressing workforce shortages. At the time, the CDA noted that 11% of Canadians reported reductions in their dental benefits, citing its December survey.
“An additional concern is that employers might drop coverage not just for CDCP-eligible employees, but for their entire workforce,” the CDA warned. “This could leave some employees who don’t qualify for CDCP without any dental coverage at all, leading to greater inequities in access and oral health outcomes.”
The CDA said it shares this concern alongside the Provincial and Territorial Dental Associations (PTDAs). “At a large scale, it could drastically alter the structure of dental care delivery in Canada and impose additional burdens on the federal program,” it said.
The CDA also shared its projections in the event of a decline in employer coverage:
- A 10% reduction in employer-provided plans could increase CDCP costs by $385 million in 2025.
- A 50% reduction could raise costs to over $1.9 billion by 2025.
- The number of CDCP-eligible patients could grow from 9 million to 17 million, increasing pressure on the public system.
Related story: First national survey: Most oral health providers can handle increase in CDCP patients
“I have not heard of any particular employer who has done this yet.”Andrew Ostro, CEO and co-founder of PolicyMe.
Public concerns rising
The CDA’s December opinion survey found that about half of Canadian workers are concerned their employer-provided dental coverage could be dropped because of the CDCP. A separate PolicyMe survey released June 3 found that 36 per cent of Canadians worry about losing employer-sponsored coverage due to economic pressures. Concern was highest in British Columbia (43%) and among Gen Xers (42%).
When asked whether employers are scaling back dental benefits, Andrew Ostro, CEO and co-founder of PolicyMe, a Toronto-based insurance tech company, said, “I have not heard of any particular employer who has done this yet.” He explained that the CDCP’s launch is recent and benefit plan changes typically occur at renewal.
“It’s important for employers to understand that the CDCP is unlikely to serve as a comprehensive replacement for workplace dental benefits for most employees,” Ostro said in response to a question about what employers need to know. “Resist the initial instinct to cut dental benefits with the launch of the CDCP,” he advised them.
Related story: Dental care tops list of delayed treatments, even for insured Canadians, survey finds
“As such, businesses eliminating dental insurance coverage for employees could cause hardship, if the employees are not eligible for the CDCP.” Health Canada
‘Businesses would not necessarily know’
Health Canada, for its part, pointed out that businesses may not have enough information to make such decisions. “Businesses would not necessarily know if their employees’ adjusted family net income is less than $90,000, if they are a Canadian resident for tax purposes, or if they file their tax return,” it said.
“As such, businesses eliminating dental insurance coverage for employees could cause hardship, if the employees are not eligible for the CDCP,” Health Canada warned. “In addition, based on the income threshold and associated co-payment structure under the CDCP, most employees will be better off under their current employer-sponsored plans.”
While households earning under $90,000 are eligible for CDCP, Ostro indeed noted that for those earning between $70,000 and $80,000, the 40% co-pay offers limited value. Above that, the co-pay rises to 60%.
“A dual-income household earning under $70K still faces serious financial pressures—childcare, housing, health costs. Yet, they might not get full support under the current rules,” he said. “The program needs to account for the cost of living and offer more flexible thresholds.”
Even those with private insurance, they still pay out of pocket. PolicyMe’s survey found that 29 per cent of insured respondents spent over $1,000 out-of-pocket on health or dental services in the past year; 9% spent over $3,000.
“The CDCP has come a long way,” the CDA said. “But the CDA and the PTDAs believe there is still work to be done.”
Health Canada, meanwhile, said, “The Government of Canada will continue to work with industry partners and provincial and territorial governments to consider mitigation solutions to avoid displacement of existing dental plans.”