Talking About Financial Matters That Affect You and Your Organization
Canada Dental Benefit Update - September 2022
Sep 15th, 2022
Primary Impact – At this time, there is no impact to your Benefits program, as the government is indicating a condition of coverage is not having access to private Dental coverage. In addition, coverage is specifically based on family income, with benefits ranging from $260 to $650 per child per year, and no Benefit for families with combined $90,000+ income or private coverage. The benefit amounts announced in this plan are far lower than what the average group plan offers.
The program eligibility remains the same as previously announced including:
The program is restricted to:
- Families with an income of less than $90,000 annually, with no co-pays for those under $70,000 annually in income.
The approach is phased in targeting:
- 2022 for children under 12
- 2023 expanded to include people under 18, seniors and persons living with a disability
- 2025 full implementation
It is clear the government will not be ready to roll out a comprehensive Dental program for December, instead introducing a temporary measure whereby parents or guardians need to apply through the Canada Revenue Agency.
The program is called the “Canada Dental Benefit”, with a target implementation date of December 1, 2022, and covering expenses retroactive to October 1, 2022. (Pending legislation passing Parliament and receiving Royal Assent).
According to the government, the first phase of Dental Care will provide “direct, up-front tax-free payments” up to $650 per child per year, depending on family income. Examples include:
o $260 would be provided per child if the family’s adjusted net income is between $80,000 and $89,999.
o $390 would be provided per child if the family’s adjusted net income is between $70,000 and $79,999; and
o $650 would be provided per child if the family’s adjusted net income is under $70,000;
However, to access this benefit, parents or guardians need to apply through the Canada Revenue Agency (CRA) and attest that:
o Their child does not have access to private dental care coverage.
o They will have out of pocket dental care expenses for which they will use the benefit; and
o They understand they will need to provide receipts to verify out of pocket expenses occurred, if required.
In addition, Health Canada and the CRA are collaborating on developing an application platform to deliver payments, with additional announcements to come.
We will continue to closely monitor developments and will keep you updated