"I highly recommend the S-corp get the insurance policy and add the cost of the insurance to the W-2 you should be issuing yourself and then the SEHI deduction will count. "
This is a great way to take advantage of Self employed Health insurance deduction for the whole family.
There are a couple factors to consider:
Whether the S-Corp has other employees it's paying. You can't only offer good benefits to S-Corp shareholders and not to other employees except under very specific circumstances.
The S-Corp doesn't have to get the insurance policy anymore, do a straight reimbursement and keep a paper trail.
You take the deduction on your personal tax return, but you also get the benefit of adding it to your gross on the W2 (and not paying FICA on it), so it reduces your profit on the business side.
