You are correct.  If entered in the medical itemized deduction area, the medical gets reduced by 7.5% or 10% (depending on age) of your adjusted gross income. 

Where you are entering it now, is much better from a tax perspective, as there is no reduction due to being a K-1 holder (self-employed). 

Great job!  The information below is directly from the IRS web site.

Don’t Miss the Health Insurance Deduction if You’re Self-Employed

IRS Tax Tip 2013-43, March 28, 2013

If you are self-employed, the IRS wants you to know about a tax deduction generally available to people who are self-employed.

The deduction is for medical, dental or long-term care insurance premiums that self-employed people often pay for themselves, their spouse and their dependents. 

Source:  https://www.irs.gov/uac/newsroom/dont-miss-the-health-insurance-deduction-if-youre-self-employed

Thanks.  Are you a CPA or just a general tax aficionado?

CPA, 34 years with IRS and 6 here with TurboTax.

Enjoy helping others doing their taxes correctly, paying only what they owe.

Well thank you again.  I didn't realize TT hired experts to help us out.  I am glad they do.  Enjoy your Fed retirement when you finally get to it, I am enjoying mine. 😉

I entered the premium amounts for myself and spouse, both under $4000, under self employment income expenses.  TT shows it as fix needed and won't allow me to e file.  The note says that the amount exceeds maximum.  We showed a net profit for self employment.  Why is it being questioned?

Most of the TurboTax experts are CPAs and have the training and knowledge of both the changing tax laws and the software.