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
