While details seem to still be coming out about the recently-passed medical insurance legislation, one of the things that people are wondering about is the creation of the so-called “health exchanges” by the states that the legislation requires.

Specifically, the law requires individual states to each create a medical insurance exchange, which must be in place by January 1, 2014. The states may create an exchange of their own, or they may participate in an exchange that includes several states.

In theory, the purpose of a medical insurance exchange is to make it easier for residents of the state to purchase their health care insurance, and to do it in a more affordable way. Individuals as well as businesses can compare the costs involved in a number of different medical insurance plans, as well as the specific types of coverage that comes from the plans.

Initially, the medical insurance exchanges will be required to offer coverage to small businesses with less than 100 employees. By 2017, it is expected that the states should allow companies with more than 100 employees to participate.

An insurance exchange will offer at least two health plans. The exchange is designed to be a “one-stop” experience for getting information and for shopping for your medical insurance.

The exchanges will generally provide information about the benefits and costs of the health plans via a website maintained by the state government. The state will also provide materials via mail or via public places such as libraries. You can usually enroll in your plan on the exchange website, as well as by phone or in person.

The health plans available via a medical insurance exchange will vary from one state to the next. The idea is that you can choose the plan that’s right for you and for your family. Each plan has basic benefits that include comprehensive health care services, and the levels of cost sharing will vary as will premiums.

In some cases, the government may subsidize the cost of purchasing medical insurance via the exchange. This may come in the form of a federal income tax credit, or through direct aid from your state.

Whether the medical insurance exchanges will prove to be a good thing or whether they’ll experience some of the difficulties seen in states like Massachusetts, which has had an exchange in place since 2006, remains to be seen.