Question Period Note: Canadian Dental Care Plan

About

Reference number:
PSPC-2024-QP-00055
Date received:
Aug 28, 2024
Organization:
Public Services and Procurement Canada
Name of Minister:
Duclos, Jean-Yves (Hon.)
Title of Minister:
Minister of Public Services and Procurement

Issue/Question:

Public Services and Procurement Canada is working with Health Canada to provide contract management services for the new Canadian Dental Care Plan.

Note: All questions regarding the collaboration with provincial and territorial partners and the design of the program should be directed to Health Canada.

Suggested Response:

  • Public Services and Procurement Canada efficiently accelerated the procurement process and collaborated closely with industry to acquire a private partner, ensuring the successful delivery of this ambitious program
  • We have built a strong partnership with our claims processor to guarantee the Canadian Dental Care Plan runs smoothly
  • The Canadian Dental Care Plan is already making a big difference, with over 1 million Canadians using the plan as of November 1, 2024
  • As of November 1, 2024, the scope of the Canadian Dental Care Plan has expanded with the launch of services that require preauthorization as well as paper claims processing
  • Even with the scale and tight schedule, the Canadian Dental Care Plan has rolled out as planned. We expect all eligible Canadians to have access by early 2025

Background:

In Budget 2022, the Government of Canada committed $5.3 billion to provide dental care for an estimated 7 to 9 million Canadians without access based on cost. The program targets families earning under $90,000 annually, with no co-pays for those earning under $70,000.

Public Services and Procurement Canada managed the procurement for a claims processing provider on behalf of Health Canada:

  • A Request for Information was issued in July 2022, receiving 26 responses that helped shape the program
  • An Invitation to Qualify was issued in October 2022, leading to three pre-qualified suppliers
  • A subsequent Request for Proposals was issued in June 2023, resulting in a compliant proposal from Sun Life

An Early Work Agreement was awarded to Sun Life in August 2023 and Treasury Board approved the final contract in October 2023. Sun Life was awarded the Canadian Dental Care Plan contract on December 1, 2023. The contract period is approximately six years, consisting of a multi-phase approach which will include a Start-Up Phase (with six stages), an Operations Phase, and a Close-Out Phase. In addition, Canada can extend the Contract for up to two additional two-year periods and one additional one-year period, if required.

The Operations Phase launched on May 1, 2024, and claims processing services began. The Start-Up Phase and the Operations Phase will overlap until the Start-Up Phase officially ends on April 1, 2025.

On July 8, 2024, a contract amendment was issued to allow the participation of dental care providers on a claim-by-claim basis, without formal registration in the Canadian Dental Care Plan.

On November 1, 2024, the fourth stage of the Operations Phase was successfully launched. This expanded the Canadian Dental Care Plan to include more services, including those that require preauthorization, as well as paper claims processing.

Additional Information:

  • A comprehensive multi-stage procurement process was initiated by Public Services and Procurement Canada in July 2022
  • In December 2023, a contract was awarded to Sun Life worth approximately $750 million for six years (until October 2029) to provide claims processing for the Canadian Dental Care Plan
  • The Operations Phase launched on May 1, 2024, and claims processing services began
  • The Canadian Dental Care Plan contract contains an Indigenous Participation Component, designed to support Indigenous economic development. The Contract specifies a total value of sub-contracts required with Indigenous businesses. This Indigenous Participation Component has been met by Sun Life