"If you're young and healthy and don't need much care, this is a market for you," says Karen Pollitz, project director of the Georgetown University Health Policy Institute. "But most people who try to buy individual health insurance have difficulty getting coverage because of availability, affordability and adequacy of coverage."

Buying health insurance in the individual market can be risky. ("Individual" policies can cover more than one person; the term merely indicates that the buyer is not part of a group whose health risks are being pooled.) Double-digit annual premium increases are the norm, policyholders lack many protections enjoyed by those who are covered through employers, and the coverage pales in comparison with group insurance. If you're sick, either before you enroll or when it's time to renew your coverage, the individual market is even harder on your wallet and your options are severely limited.

We nearly chose Mamsi's Sole Proprietor PPO option, which had decent coverage for a $501 monthly premium ($6,012/year). But considering that we could be on the hook for up to $6,800 more (including a $1,000 deductible) every year in out-of-pocket costs, we picked a plan with a lower premium.