Recently, Canada passed the dental benefit bill for children under 12 (Bill C-31), marking the legislative approval of Canada's first-ever dental care insurance plan (Canada Dental Benefit), which will benefit hundreds of thousands of low-income families. The government has set December 1 as the start date for applications and has outlined the details for families currently eligible for the plan.
Who is eligible?
Currently, this benefit is available to families with children aged 12 or under, with an annual family income of less than $90,000. According to government regulations, the benefit will provide up to $650 per year for each eligible child, with the specific amount depending on family income.
l If the family's adjusted net income is under $70,000, each child will receive a $650 benefit;
l If the family's adjusted net income is between $70,000 and $79,000, each child will receive a $390 benefit;
l If the family's adjusted net income is between $80,000 and $89,000, each child will receive a $260 benefit.
The plan will cover expenses retroactive to October 1, 2022.
How to apply?
The first phase of the dental care plan will provide eligible parents or guardians with direct, advance, tax-free payments to cover dental expenses. However, parents or guardians must apply through the Canada Revenue Agency (CRA) and attest that:
l Their child does not have access to private dental insurance;
l They have out-of-pocket dental care expenses and will use the benefit for these costs;
l They will provide receipts to verify the out-of-pocket expenses incurred if required.
The federal Liberal Party estimates that 500,000 Canadian children will benefit and states that receiving this benefit will not reduce existing federal benefits, such as the Canada Child Benefit.
Currently, although only those under 12 will have priority access, the plan will be expanded to children under 18, seniors, and persons with disabilities in 2023. By 2025, those with a family income of less than $90,000 per year and individuals with an annual income of less than $70,000 will not be required to pay co-payments.
In the 2022 federal budget, the Canadian federal government will allocate $5.3 billion over five years, followed by an additional $1.7 billion to Health Canada to oversee the implementation of the dental care plan.
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