Editor's note: This blog post was updated in December 2023 for accuracy and comprehensiveness.
In 2023, the federal government committed budget to fully implement the Canadian Dental Care Plan (CDCP). The plan will provide dental coverage for uninsured Canadians with annual family income of less than $90,000, with no copays for those with family incomes under $70,000.
Read on to learn more about:
- The new reporting requirements for the CDCP and changes to T4 and T4A tax slips, beginning for the 2023 tax year
- CDCP eligibility
- CDCP applications and when you can apply
- CDCP coverage start dates and services covered
Canadian Dental Care Plan reporting requirements
The legislation requires the reporting of employer-provided dental coverage via T4 and T4A tax slips. This reporting requirement ensures that the new dental care plan is limited to Canadians with an unmet need for dental care who don’t have access to private insurance.
The legislation requires employers to report on a tax slip whether an employee, former employee, or a spouse of a deceased employee was eligible on December 31 of the reporting tax year to access dental insurance or dental coverage of any kind, due to current or former employment.
T4 and T4A tax slip updates for employer-offered dental benefits
This reporting requirement will be mandatory beginning with the 2023 tax year reporting cycle and will be required annually. As a result, the following new boxes will be added to the T4 and T4A slips for the 2023 tax year along with specific codes.
New T4 Box 45: Employer-Offered Dental Benefits
New T4A Box 015: Payer-Offered Dental Benefits
For the T4A, box 015 is mandatory if an amount is reported in box 016 (pension or superannuation). Otherwise, box 015 is optional.
Please note: The codes above aren’t dependent on whether the employee has chosen the coverage or not. The code should reflect the coverage available to the employee based on their group plan.
To support our clients during year-end and ensure compliance, Avanti is currently working on updates to include the new dental coverage reporting requirements. These changes will be available in the product in December as part of our annual year-end tax release. Stay tuned for more information!
Canadian Dental Care Plan eligibility
To qualify for the Canadian Dental Care Plan (CDCP), you must meet all the eligibility criteria. If you have a spouse or common-law partner, you both need to meet the eligibility criteria to be able to qualify for the CDCP. Eligibility for children under 18 will be determined by the parents’ or guardians’ eligibility.
To qualify for the CDCP, you must:
You need to meet all the eligibility criteria to qualify for the CDCP.
If you're a parent or guardian of a child under the age of 12 and do not have access to dental insurance, you may already be eligible for the Canada Dental Benefit. This benefit is available until June 30, 2024.
Canadian Dental Care Plan applications
Applications for the Canadian Dental Care Plan (CDCP) will open in phases. Use the calculator provided by CRA to find out when you can apply.
Application schedule by age group
Current status
Starting in mid-December 2023, letters will be mailed to seniors aged 87 and above who may qualify, followed by those aged 77 to 86 in January 2024, then those aged 72 to 76 in February 2024 and those aged 70 to 71 in March 2024. These letters will include a personalized application code and instructions on how to apply.
If you receive a letter
- Follow the instructions in the letter to apply by phone.
- Wait to receive a confirmation from Service Canada that lets you know whether your application was successful and you qualify for the CDCP.
- If you do qualify, wait to receive your welcome package from Sun Life before scheduling any dental appointments. It will explain further when you can start to get care paid for and how.
If you're eligible to apply but have not received a letter
Invitation letters will be sent out in phases beginning in December 2023. All letters are expected to be delivered by the end of March 2024.
These letters will be sent to the address you used in your 2022 tax return and only if you have an adjusted family net income of less than $90,000. If you have not filed your 2022 taxes, you may not receive a letter in the mail. If your address is out of date, you should contact the Canada Revenue Agency to update your file.
If you are eligible to apply starting in May 2024
People who are eligible to apply starting in May 2024 will be able to do so online. More information on how to apply online will be added at a later date.
Canadian Dental Care Plan Coverage start dates & services covered
Canadian residents who are enrolled in the CDCP will be able to start seeing an oral health provider as early as May 2024, starting with seniors. The start date to access oral health care will vary based on when each group can apply, when the application is received and when enrolment is completed.
Booking an oral health appointment
Your coverage will begin on the date provided in the welcome package you receive from Sun Life. Appointments with an oral health provider should be scheduled as of that date, and no sooner, for the eligible oral health care services to be covered under the plan. The CDCP will not reimburse you for oral health care services received before the start date.
When booking an appointment with an oral health provider, make sure to ask if they have enrolled in the CDCP to limit unexpected out-of-pocket payments.
Annual reassessment
You will need to meet the eligibility requirements each year to qualify for the CDCP. More information on the annual reassessment process will be added at a later date.
Services covered
The Canadian Dental Care Plan (CDCP) will help cover the cost of various oral health care services that keep your teeth and gums healthy and treat problems that can happen.
Examples of services that could be covered under the CDCP, as recommended by an oral health provider, includes the following:
- preventive services, including scaling (cleaning), polishing, sealants, and fluoride
- diagnostic services, including examinations and x-rays
- restorative services, including fillings
- endodontic services, including root canal treatments
- prosthodontic services, including complete and partial removable dentures
- periodontal services, including deep scaling
- oral surgery services, including extractions
Note: Some services will only become available in fall 2024. This page will be updated as more details are available.
The CDCP will only pay for oral health care services covered within the plan at the established CDCP fees.
How much will be covered?
People covered under the CDCP will not have to pay the full cost out of their own pocket. Oral health providers enrolled in the CDCP will be required to submit the claims directly to Sun Life for payment rather than having patients seek reimbursement from Sun Life for services covered under the plan.
The CDCP will reimburse a percentage of any eligible expenses, but some people covered under the plan may have a co-payment. A co-payment is the percentage of CDCP fees that is not covered by the CDCP, and that people covered under the CDCP will have to pay directly to the oral health provider. Your co-payment is based on your adjusted family net income.
Oral health providers are encouraged to follow the CDCP fees, which are not the same as the provincial and territorial fee guides, so their patients do not face additional charges at point of care.
Patients should always confirm what costs will not be covered by the plan and that they will be expected to pay with their oral health provider before receiving care.
Co-payments based on adjusted family net income
For more information on the Canadian Dental Care Plan, please visit the CRA website.
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Sign up for the free year-end toolkit
Year-end is hectic, but don't worry – we’re here to help! Sign up for our free year-end toolkit and we'll keep you organized and in the loop about important dates. You'll also get helpful year-end checklists, employee resources, time-saving tips, and more.
