The federal government in Ottawa has awarded a $15 million contract to insurance operator Sun Life Financial (SLF) to create a taxpayer-funded dental care plan.
Government officials say the agreement will see Sun Life develop a national dental care plan that covers low-income Canadians and people without private insurance.
The new dental care plan will replace an interim benefits system for low-income earners that was established in 2022.
A national dental care program is a priority of the socialist NDP political party, which props up the minority Liberal government of Prime Minister Justin Trudeau in Parliament.
In this year’s budget, the Liberals pledged $13 billion over the next five years to create and implement the national dental care plan, which federal officials estimate will insure about nine million Canadians.
The exact timing of when the dental care plan will launch has not been made public.
Sun Life Financial’s stock has gained 17% over the last 12 months to trade at $67.27 per share.