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

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Congress allows self-employed taxpayers to deduct the cost of health insurance above the line (for AGI) because this deduction provides a measure of equity between employees and the self-employed. Employees have the benefit of their employer paying a portion of the health insurance cost and can deduct the remaining portion from their taxable income, whereas self-employed taxpayers have to pay the full cost of health insurance out of pocket. The deduction helps level the playing field and allows self-employed individuals to deduct their health insurance costs from their taxable income, reducing their overall tax liability.

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