Question Period Note: Dental Care - Fiscal implications of interim Canada Dental Benefit

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• The Government of Canada has committed to improving access to dental care and, in Budget 2022, proposed funding of $5.3 billion over five years, starting in 2022-23, and $1.7 billion on-going for a national dental care program for Canadians who earn under $90,000 a year.
• The cost of the interim Canada Dental Benefit will be fully covered within the funding announced for dental care in Budget 2022.
• It is estimated that over 500,000 Canadian children could benefit from this targeted investment of over $900 million.
• The interim Canada Dental Benefit, focusing on children under 12, is the first stage of the government’s plan to deliver dental care for families with income under $90,000 who do not have access to dental insurance.

IF PRESSED ON PBO REPORT …
• The Government of Canada welcomes and appreciates the cost estimates prepared by the PBO regarding the interim Canada Dental Benefit.
• Health Canada officials have met with the PBO’s office to discuss its costing and have determined that the variances are primarily due to some minor differences in assumptions (e.g., Health Canada did not forecast savings from reduced Medical Expense Tax credits, as the PBO did) and to the treatment of administrative costs.
• Moreover, Health Canada costs estimates include funding to support activities related to both the interim Canada Dental Benefit and the planned national dental care program.

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• Funding to deliver the interim Canada Dental Benefit is sourced from Budget 2022, which provided funding of $5.3 billion over five years, starting in 2022-23, and $1.7 billion ongoing to Health Canada to provide dental care for Canadians.
• Specifically, the cost of the dental benefit represents a savings of $94 million over the next three years, starting in 2022-23, relative to the funding provided for dental care in Budget 2022.
• It is estimated that over 500,000 Canadian children could benefit from this targeted investment of $938 million.
• On October 20, 2022, the Office of the Parliamentary Budget Officer (PBO) released a Legislative Parliamentary Note that estimated the cost of the interim Canada Dental Benefit to be $703M.
• Health Canada officials have met with the PBO’s office to discuss its costing and have determined that the variances are primarily due to some minor differences in assumptions (e.g., Health Canada did not forecast savings from reduced Medical Expense Tax credits, as the PBO did) and to the treatment of administrative costs.
• Health Canada cost estimates include start up and close-out costs for the interim benefit, as well as policy development, program oversight and compliance efforts, additional resources for the Canada Revenue Agency contact centres who will help applicants and answer questions, and outreach and communication costs.
• These investments take into account the need to raise awareness of this benefit among eligible parents and to maintain the integrity of the program, given it relies on an attestation model for some information.