By 2014, states will set up insurance exchanges. The exchanges will make it easier for small businesses and individuals to find and buy health insurance. If a state doesn’t establish one, their citizens can buy insurance from the federal exchange.

Healthcare reform requires the Department of Health and Human Services to approve state exchanges by January 1, 2013. They must be open for enrollment mid-year.

Many states are on their way, passing laws, studying exchanges or have systems in place. So far Health and Human Services has awarded states $314 million in grants.