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Yep - see http://www.projectcalico.org/calico-networking-for-kubernete....

[Disclosure - I'm part of the Project Calico team.]

Weave and Openvswitch are two other options. Many IaaS (gcp, aws) provide the required nobs and dials to configure this "natively" using their API so no extra SDN required if you are already running on a compatible cloud provider.

I thought each host needs an entire /24 subnet, and the pods that run on the host get individual IP addresses. Am I mistaken?

No, there's a private network that's shared between all the containers running on the pods, but as long as the nodes can see each other, you're good.

Full disclosure: I work at Google on Kubernetes