The Canada Dental Care Plan (CDCP) provides a landmark change to Canada’s covered health care services. It is important to understand if your employees do or will qualify for coverage under the government program or if you as a business owner should continue to offer dental insurance benefits to cover the costs of dental health care.
Here’s what you need to know.
Does the CDCP replace employer offered benefits? (and should it?)
No. The CDCP does not replace existing benefits. The CDCP offers dental coverage to Canadians who do not have access to dental insurance.
So, should you remove dental coverage from your benefit offering to employees? No, we don’t think so because in order to qualify for CDCP, the applicant (your employee)
- Must not have dental insurance through their or their family member’s employer, including health care spending and wellness accounts
- If you do offer an HCSA to employees, they will not qualify for CDCP, and they may not have sufficient funds in their account to cover their needs (and their family members dental care costs)
- Must have an adjusted family income of less than $90,000
- Do you know each of your employees’ family incomes? Will you cut them off from having any dental care coverage if you terminate your dental plan (or decide to not offer dental benefits)
Only some dental services are covered by CDCP
Services covered under the CDCP, as recommended by an oral health provider, include 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.
Are these expenses covered in full? Not always. For the most current information, please visit Canada.ca. The amount of coverage vs. out-of-pocket expense depends on a family’s net income.
- For households making $70,000 or less, 100% of CDCP listed services are covered but there may be additional dental charges not covered.
- For households with earnings above $70,000 but below $80,000, only 60% of service costs are covered so they must pay 40% of costs and may face other charges for fees not provided for under the plan.
- For households with earnings of above $80,000 but below $90,000, only 40% of service costs are covered so they must pay 60% of costs and may face other charges.
- Households with earnings above $90,000 are not covered by CDCP at all. The program, which Health Canada has sought to emphasize is not a formal insurance plan, covers a range of oral health services, such as cleanings, X-rays, cavity fillings, dentures, and root canals.
Here is the compelling reason to continue to offer (or plan to offer) dental benefits
Even with the introduction of the Canada Dental Plan, there really is one compelling reason for you as a small employer to continue offering dental benefits to your employees: enhanced coverage for all employees.
The Canada Dental Plan may provide basic coverage, but your employer-sponsored dental benefits can offer more comprehensive coverage. This can include a wider range of services such as orthodontics, periodontics, and major restorative work, which might not be fully covered under the national plan.
Offering dental insurance as part of your workplace benefit package can help employees access necessary treatment regardless of their household income level. As the employer offering the plan, you can choose the type of dental coverage you offer, and the percentage of dental costs covered per year for:
Basic Dental
For routine oral health maintenance, this coverage includes dental check-ups, fillings, X-rays and cleanings.
Comprehensive Basic
This coverage includes periodontal treatment of gums and mouth tissue including cleaning and scaling, endodontic root canal therapy, and denture cleaning and repairs.
Major Dental
Includes services to restore teeth including crowns, on lays, dentures and bridgework.
Orthodontic Dental
Covers services to correct defects and straighten teeth including braces and retainers.
There are more reasons dental benefits can have a significant positive impact on both your business and your workforce
Dental insurance plans are reasonably priced, so for a small benefit investment you can make a real impact for your business
- In a competitive job market, offering dental benefits can make your company more attractive to potential employees. It shows that you care about their overall well-being, which can help you attract and retain top talent
- Every employee (or contract worker) is eligible with no medical questions asked
- Regular dental care can avoid employee absences caused by untreated cavities and oral infections. This can lead to increased productivity, benefiting your business operations.
- The plan will include coverage for vision care, registered specialists and therapists, homecare and nursing, medical equipment, ambulance costs, hearing aids, and even travel medical insurance.
And if your business already has a dental plan in place, is it enough? Don’t forget that you can offer employees access to individual health and dental plans that will work with their existing dental coverage to give them higher annual maximums or broader coverage for comprehensive care.
If your employees are confused by CDCP, they should read this. Feel free to share.
Let us help you understand your dental coverage options for employees
By offering dental benefits, you are making a valuable investment in your employees’ health and well-being, which can ultimately lead to a more successful and thriving business. By working with SBIS you won’t have to worry about going through several people to get answers on which plan is best for your company. Call us during business hours Monday to Friday 8:45 a.m. – 4:45 p.m. Eastern Time at 1-800-667-0429 or 416-601-0429. A dedicated service representative will personally take your call and make sure that your questions are addressed right away. Your time is important, which is why we are committed to saving you time and effort.
You also don’t have to fill out any paperwork; we take care of it all! Our insurance professionals collect all the necessary details. We provide brochures and other information for both your HR department and the employee to review.
Discover the excellent range of products we offer or go online to choose your plan now.
