Unfortunately COBRA payments will not count because the plan is in your spouses name and also the name of her former employer. For health insurance premiums to be deductible on line 29 of form 1040 as self-employed health insurance, the premiums need to be in the self-employed individuals name or the business' name (assuming you are a sole proprietor).
See the following from IRS - Don't Miss the Self-Employed Health Insurance Deduction:
There are also some rules that apply to how the insurance plan is established. Follow these guidelines to make sure the plan qualifies:
If you’re self-employed and file Schedule C, C-EZ, or F, the policy can be in your name or in your business’ name.
If you’re a partner, the policy can be in your name or the partnership’s name and either of you can pay the premiums. If the policy is in your name and you pay the premiums, the partnership must reimburse you and include the premiums as income on your Schedule K-1.
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If you’re an S corporation shareholder, the policy can be in your name or the S corporation’s name and either of you can pay the premiums. If the policy is in your name and you pay the premiums, the S corporation must reimburse you and include the premiums as wage income on your Form W-2.
