What you need to know about the Canadian Dental Care Plan - before you consider cancelling group coverage

The Canadian Dental Care Program (CDCP), offered by the Canadian government, was launched at the end of 2023. It was designed to provide uninsured Canadians with access to dental care. Given the public plan, many employers are wondering if they should continue to offer dental coverage as a part of their group benefits. However, the rollout hasn’t been as smooth as many would have liked and there’s lots to consider before making any changes to your employee benefits plan. There are some potential pitfalls for employers who are considering cancelling their dental benefits in favour of the government plan, and it’s important that you stay informed. Here’s what you need to know.

Not everyone qualifies

While the Canadian Dental Care Program is in theory available to all Canadians, the truth is that there are some restrictions. First, in order to qualify for coverage through the government plan, you can’t have access to any coverage through your employer. Or your spouse’s employer. It also depends on family income. To qualify for CDCP, your adjusted family net income must also be less than $90,000. 

This is an important consideration for employers reviewing their employee benefits plans. If you choose to remove dental coverage from your plan, employees may still be ineligible for the Canadian Dental Care Plan - even if their spouse has only limited dental or Health Spending Account coverage through their own employer. This could leave employees and their families without adequate protection.

While many employees might appear to qualify for the CDCP based on their individual salary, eligibility is determined by total household income - something employers typically don’t have visibility into. If an employee’s family income exceeds the $90,000 threshold, they won’t qualify for the government plan, meaning that removing dental benefits could unintentionally leave them without any coverage at all.

It’s not ‘free’

Even if you qualify for coverage with the Canadian Dental Plan, the amount of coverage varies by income level. Those earning $70,000-$79,999 will only get 60% coverage for their dental claims, and those earning $80,000-$89,999 will only receive 40%. As mentioned previously, those earning more than $90,000 are ineligible for the program. 

However, income level isn’t the only factor in determining whether there are additional fees you may have to pay out of pocket. The government of Canada website also specifies that the CDCP will only pay a portion of the cost for some oral health care services. If the cost of your dental appointment is more than what the CDCP will reimburse your dentist for their services, your dentist may choose to bill you directly for the difference. 

As an employer, removing dental coverage might mean your employees have to pay more out of pocket for dental expenses, even if they are eligible for the public program. 

The dental program doesn’t cover everything

While the program does offer coverage for a wide range of services, it doesn’t cover everything. Orthodontic treatments (like braces), dental implants, mouth guards, some types of crowns and bridges, as well as temporomandibular joint (TMJ) therapy, aren’t covered under the program. In all cases, the treatment must be considered medically necessary, and in some, they must be pre-approved in advance. For many, these treatments may not be considered strictly medically necessary, but the lack of access to them may be life-altering for some. This could have a significant impact on employee wellbeing.     

The claim rejection rate is higher than private plans

According to Health Canada, 52% of requests for pre-authorized dental work were rejected by the program between November 2024 and June 2025. Dr. Bruce Ward, president of the Canadian Dental Association, says that’s a much higher rejection rate than private plans. 

Pre-authorization requests can also take a prohibitively long time - often weeks or even months - resulting in long wait times for needed care, and in some cases, a lack of treatment. A recent CDA survey found that 92% of dental offices report that delays have discouraged patients from proceeding with necessary treatment.

Demand could outstrip supply

Uptake of the program has been significant. As of September 2025, over 5 million Canadians have been approved for the program, with over 3 million claims approved. For some in the industry, this is a cause for concern. As the program expands and more Canadians gain access to dental care through the government, potential workforce shortages are a real problem. The Canadian Dental Association estimates that with the increase in patients from the Canadian Dental Care Plan, Canada will need an additional 2,300 dental assistants and over 1,500 dental hygienists by the end of 2025. Many provinces are already experiencing shortages. 

Dentists may also only offer a limited number of spots for those in the program, citing concerns around low reimbursement rates, high administrative burden, and complex payment processes. This could make it harder for employees to find appointment times that fit around their workday, without waiting for extended periods, which would impact presence and productivity.

While the Canadian Dental Care Program benefits many who don’t have coverage, and is resulting in people who have been unable to afford it for years getting treatment for the first time, there are still lots of questions and uncertainties about the program. It has also had the unintentional effect of eroding employer-sponsored dental plans. If you’re considering making changes to your employee benefits plan, based on the Canadian Dental Care Program, let’s have a conversation. We can help you determine what’s best for your business, your employees and their families.