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In the case of a retiree, the former employer cannot reduce the pension to give them a tax-free benefit under a cafeteria plan like an employee receives.
As your husband does not have this premium deducted pre-taxed then it is allowed for a medical expense when itemizing, Schedule A.
To be a business expense, the insurance plan must be established, or considered to be established under your business. This is not the case as the previous business when he was an employee has established the plan.
You can use them on Schedule A should you itemize but not against the business.
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