And, as I've heard it, the reason that Delaware has very favorable business laws/legal system is that the DuPont company has been there since about 1800 (not too long after 1776 =). DuPont has been a huge company in a very small state for a very long time. Early on, they were able to set up a very favorable climate for themselves and thusly other corporations, and then things have snowballed from there.

Seems to me that if you're in the target demographic of a YC founder (mid 20s, no family obligations), then health insurance is not too much of an issue cost wise. In the states I've lived in FL and WI, my insurance has run around 100 to 130 per month.

Call an agent, fill out the forms... its all of a few hours of legwork. Welcome to running a business =).