A big problem with the individual market is that it isn't financially viable to serve the individual market at reasonable prices, because in the US market, not holding a job with adequate health insurance is a huge adverse selection marker.
Startup founders should be a lot more concerned about this than they seem to be. Health insurance almost screwed me at Matasano in 2005; it would have, had Erin not taken a full time job elsewhere until Matasano had group coverage.
