Congress allows self-employed taxpayers to deduct the cost of health insurance above the line (for AGI)because:

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The deduction for self-employed taxpayers to deduct the cost of health insurance above the line (for AGI) provides a measure of equity between employees and the self-employed. This is because employees have the advantage of having their health insurance premiums deducted from their gross income for calculating their taxable income. Self-employed taxpayers do not have the same advantage since they do not have an employer that pays a portion of their health insurance premiums. Therefore, this deduction helps to level the playing field for the self-employed.

Congress Allows Self-Employed Taxpayers to Deduct the Cost of Health