(RALEIGH) -- State House lawmakers advanced legislation that would create an insurance marketplace for individuals and small businesses. The House Insurance Committee voted 23-5 for a proposal to create the state's health benefit exchange.

Supporters said the measure would make it easier for individuals to find private health plans – especially for those who now have the hardest time finding coverage. Rep. Jerry Dockham, R-Davidson, said the exchange will essentially function as a marketplace similar to other websites currently offering deals on hotels or airline flights.

But critics said the proposal is not consumer friendly and will ultimately benefit private providers more than individuals. “Even though they have a lot of plans here and people say that more plans equals more competition, they’re really not competing against each other to be in the exchange,” said Rep. Verla Insko, D-Orange.

States must create their own health benefit exchanges by 2014 or the federal government will do it for them under terms of the Obama administration's health care overhaul law passed last year. The bill now heads to the House Appropriations Committee.