I've been puzzling over this point, too. The wording in IRS Pub. 535 and elsewhere is ambiguous, but I don't think FEHB insurance premiums are deductible as a business expense even though you are retired and the Federal Government is no longer your "employer." The FEHB program is a "subsidized group health" plan since the feds are still paying about two-thirds of your premium as a retiree. The fact that the FEHB premiums you pay are subsidized rather than fully on you would seem to make them ineligible for the self-employed deduction.
Any else have any thoughts on this?
