Updated July 2026 · IllinoisPlanFinder.com — Licensed Health Insurance Producer (NPN #21249133)

Small Business Health Insurance for Childcare Providers in Lombard, Illinois

In Lombard, small businesses with 1-50 employees can access group health plans, HRAs, or individual marketplace options through GetCoveredIllinois.
For 2026, 5 confirmed carriers offer marketplace plans in Rating Area 2, which covers DuPage and Kane counties.
Small group health insurance premiums paid by a childcare business are generally 100% tax-deductible as a business expense.
DuPage County, where Lombard is located, has a population of over 930,000 and an uninsured rate of 5.2% per U.S. Census Bureau ACS 2024 5-year estimates.

For childcare providers running a small business in Lombard, Illinois, securing the right health insurance for your team is a critical decision. Whether you're considering traditional group plans, Health Reimbursement Arrangements (HRAs), or guiding employees to the state marketplace, understanding your options can help you attract and retain quality staff in a competitive market. This guide outlines the health insurance landscape for small childcare businesses in Lombard, focusing on available plans, eligibility, and how to navigate the choices.

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Understanding Health Insurance Options for Your Lombard Childcare Business

As a small business owner in Lombard, you have several avenues to explore for providing health benefits. The best choice often depends on the size of your staff, budget, and desired level of administrative involvement.

Small Group Health Plans

Traditional small group plans are a common choice, allowing you to offer a range of benefits with shared premium costs. In Illinois, small group plans are available to businesses with 1-50 full-time equivalent employees. Most carriers require at least two enrolled employees (typically the owner plus one non-owner employee) to qualify. These plans offer predictable costs for employees and generally have broader network access than some individual plans.

Health Reimbursement Arrangements (HRAs)

HRAs, such as the Individual Coverage HRA (ICHRA) or Qualified Small Employer HRA (QSEHRA), allow employers to reimburse employees for health insurance premiums or medical expenses on a tax-free basis. Employees then purchase individual health insurance plans, often through GetCoveredIllinois. This approach offers flexibility for employees to choose plans that best fit their needs while allowing the employer to control costs.

Guiding Employees to Individual Marketplace Plans

Alternatively, you can choose not to offer a group plan and instead direct employees to purchase individual plans through GetCoveredIllinois. Depending on their household income, employees may qualify for premium tax credits and cost-sharing reductions to make coverage more affordable. While this reduces the administrative burden on your business, it means you won't be contributing to their premiums directly.

Eligibility and Requirements for Small Business Plans in Lombard

To qualify for small group health insurance in Lombard, Illinois, your childcare business typically needs to meet specific criteria:

Employee Count: You must have between 1 and 50 full-time equivalent employees.
Participation Rate: Most insurers require a minimum percentage of eligible employees (often 70% or more) to enroll in the plan, excluding those with other coverage.
Employer Contribution: You will generally be required to contribute a minimum percentage of the employee's premium (e.g., 50%) for single coverage.
Business Location: Your business must be physically located in the plan's service area, such as DuPage County.

For HRAs, the rules vary. An ICHRA has no employer size limits and allows for different contribution levels based on employee classes, while a QSEHRA is specifically for employers with fewer than 50 full-time employees who do not offer a group health plan.

Health Insurance Carriers in Lombard

In 2026, 5 carriers offer marketplace plans in Rating Area 2, which covers DuPage and Kane counties. Small businesses looking for group plans will find options from many of these same insurers, often with a broader selection of PPO plans. The confirmed carriers serving this area include:

Ambetter
Blue Cross and Blue Shield of Illinois
Molina Healthcare
Oscar Health
United Healthcare

These carriers provide a range of plan types, including HMO, EPO, and PPO plans, allowing Lombard childcare providers to choose options that best align with their employees' needs and their business budget. It is important to compare network sizes, deductibles, and out-of-pocket maximums across different offerings.

Navigating Illinois' Health Insurance Marketplace for Your Employees

Illinois operates its own state-based marketplace, known as GetCoveredIllinois. For employees of small businesses in Lombard who are seeking individual coverage, this is the primary platform to explore.

GetCoveredIllinois allows individuals to compare plans, check eligibility for financial assistance, and enroll in coverage. Plan types available on GetCoveredIllinois in Lombard include HMO, EPO, and PPO options. Illinois expanded Medicaid in 2014, meaning adults with income up to 138% of the Federal Poverty Level (FPL) may qualify for Illinois Medicaid. This is a crucial safety net for individuals and families with lower incomes. Additionally, Illinois Medicaid covers pregnant women with income up to 213% FPL, and the Illinois All Kids (CHIP equivalent) program covers children up to 313% FPL.

Lombard, located in DuPage County, is part of Illinois Rating Area 2. DuPage County, with a population of 930,024 and a median income of $112,096 per U.S. Census Bureau ACS 2024 5-year estimates, offers a robust market for health insurance. While DuPage County does not have acute care hospitals within its boundaries, residents travel to neighboring counties for acute care, making broad network access a key consideration for health plans.

Making the Right Health Insurance Decision for Your Childcare Business

Choosing the optimal health insurance solution for your Lombard childcare business involves weighing several factors:

Budget: Determine how much your business can realistically contribute to employee premiums. Group plans involve direct employer contributions, while HRAs allow for defined contribution amounts.
Employee Needs: Consider the demographics of your workforce. Do they prioritize lower premiums, specific doctors, or broader network access?
Administrative Burden: Group plans can involve more administrative overhead, while HRAs or directing employees to GetCoveredIllinois may reduce it.
Tax Advantages: Employer contributions to group plans and HRAs are generally tax-deductible business expenses. Self-employed childcare providers may also deduct their premiums.

A licensed health insurance producer can help you assess these factors, compare quotes from multiple carriers like Blue Cross and Blue Shield of Illinois and United Healthcare, and navigate the specific requirements for small businesses in DuPage County.

Frequently Asked Questions

What types of health insurance plans are available for small businesses in Lombard?

Small businesses in Lombard, Illinois, can typically choose from Small Group Health Plans (both fully-insured and self-funded options), Health Reimbursement Arrangements (HRAs) like ICHRA, or guide employees to individual plans on GetCoveredIllinois. Available plan types include HMO, EPO, and PPO options.

Are there specific health insurance requirements for childcare providers in Illinois?

While Illinois does not mandate that childcare providers offer health insurance to employees, providing benefits can be crucial for attracting and retaining qualified staff. Compliance with federal laws like ERISA and ACA employer mandates (if applicable) is necessary, but the decision to offer coverage is generally up to the business owner.

How many employees do I need to offer a small group health plan in Illinois?

In Illinois, small group health insurance plans are generally available to businesses with 1 to 50 full-time equivalent employees. Most carriers require a minimum of two enrolled employees (owner plus one non-owner employee) to qualify for a small group plan, though some may offer options for sole proprietors.

Can I deduct health insurance premiums for my childcare business?

Yes, for small businesses, health insurance premiums paid for employees are generally 100% tax-deductible as a business expense. If you are a self-employed childcare provider, you may be able to deduct premiums for yourself and your family as an above-the-line deduction, reducing your adjusted gross income.