What You Should Know about the Canadian Dental Plan
- Jun 12
- 3 min read
Should you cancel your group dental benefits because of the CDCP? The short answer is no — and the longer answer is also no, and it’s important to understand before you or eligible employees change coverage.
It’s a fair question. But the answer is clear: cancelling or opting out of employer dental coverage does not make your employees eligible for the CDCP. In fact, it can leave them in a worse position than before.
Uncertainty is affecting employers globally, and Canada is no exception. As organizations look for ways to contain costs, some are asking whether the Canadian Dental Care Plan (CDCP) can replace group dental coverage.
What is the Canadian Dental Care Plan and Who is it for?
The CDCP is a federal government program designed to help Canadians who have no access to dental insurance and earn under $90,000 in adjusted family net income. It was built to address a gap — people who fall through the cracks of private coverage.
Adjusted family net income | How much will the CDCP cover | How much the individual will pay |
Lower than $70,000 | 100% of eligible oral health care service costs will be covered at the CDCP established fees | 0% of the CDCP established fees |
Between $70,000 - $79,999 | 60% of eligible oral health care service costs will be covered at the CDCP established fees | 40% of the CDCP established fees |
Between $80,000 and $89,999 | 40% of eligible oral health care service costs will be covered at the CDCP established fees | 60% of the CDCP established fees |
Why not cancel employer coverage to allow employees to take advantage of the CDCP?
Even if your employees are earning incomes significantly lower than the CDCP program thresholds, you have no way of knowing your employee’s family income, which determines eligibility.
It was never intended to replace employer-sponsored dental plans. And the eligibility rules reflect that.
What happens if an employee opts out of your plan?
Nothing changes in terms of CDCP eligibility. They’re still disqualified. Here’s how the government sees it:
If an employer offers dental and an employee declines it, they are still considered to have access.
If a spouse has employer dental coverage and the employee could join it — even if they never did — they are considered to have access.
Whether or not the employee pays for coverage, or uses it at all, does not change the outcome.
There is one narrow exception: if you have a retiree benefit plan, retirees who opted out of pension plan dental coverage before December 11, 2023, and cannot opt back in, may still qualify. This does not apply to active employees.
The government is checking
Since 2023, employers have been required to report each employee’s access to dental coverage on their T4 and T4A slips (Box 45 and Box 015, using codes 1–5). The federal government cross-references this data against CDCP applications.
If an employee is found to be ineligible after enrolling in the CDCP, they will be removed from the plan and required to repay any amounts claimed during the ineligible period. That’s a real financial consequence — and one that your employees deserve to know about before making any decisions.
What this means for you as an employer
Your group dental plan still serves a purpose the CDCP cannot replace.
What you can do right now:
Share this employee FAQ document with your team so that they can understand how the CDCP works.
Make sure your T4 Box 45 reporting is accurate and up to date.
If you’re unsure whether your plan still meets your employees’ needs, or if you have questions about how the CDCP intersects with your coverage, we are happy to provide benchmarking and review options.
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