Federal records reveal ballooning administration costs for Ottawa’s Canada Dental Care Plan, with expenses climbing to nearly 9% of total spending — almost $860 million — since the program’s launch, far exceeding earlier projections.Blacklock's Reporter says Health Minister Marjorie Michel’s department confirmed the program has already undergone an internal audit but refused to release the findings, citing confidentiality. Senators were told the audit produced recommendations for Health Canada and its benefits administrator, with some changes already implemented, but the full report would not be shared.Despite withholding the audit, the department acknowledged significant cost overruns. A report to the Senate national finance committee said administration spending now sits at roughly 8.6% of the benefits budget. That compares with a 2023 Parliamentary Budget Office forecast that administrative costs should average about 5% based on comparable federal programs.No detailed explanation was offered for the higher costs. .Officials said the administration budget covers Health Canada’s role in running the program, support from federal partners including Employment and Social Development Canada and the Canada Revenue Agency, as well as fees paid to third-party administrator Sun Life Assurance Company.Payments to Sun Life for the current budget year were not disclosed. The insurer was paid $108.3 million last year to process claims.Figures tabled in the House of Commons show administration costs totalled $472.9 million in the program’s first three years to March 31, 2025. Since April 1, an additional $386.9 million has been spent, bringing total administrative expenses to $859.8 million.The total does not include $4.5 billion budgeted this year for dental benefits themselves. Health Canada said that as of November 26, the average cost of care per person was about $800, noting that the figure could change as patients’ oral health needs stabilize with regular access to dental care..The spending figures were disclosed following pointed questioning at a November 26 committee hearing, where one senior official struggled to provide a clear answer when asked about administration costs, telling senators it was “difficult for me to say.”Parliamentarians had warned of potential overruns even before the program launched. Conservative MP Kelly McCauley, chair of the Commons government operations committee, told a 2022 hearing he had heard rumours that administration costs were “quite excessive” and questioned how much money would be spent on bureaucracy rather than patient care.
