Really? You think it is better to not try to contain the spread of a virus?
You need only compare the spread and death rates of AIDS in Africa compared to first world countries with their ''Nanny States'' to see how that pans out.
The best way to combat infectious diseases like this is through education and isolation (ie quarantine) and these require a strong central government with the funds to carry it out.
Rugged individualism isn't going to help you much when big, expensive, nationwide measures need to be taken.