Yes. Kentucky no longer allows you to deduct out-of-pocket medical insurance premiums separately on the Kentucky return. However, if you qualified for the deduction on the Federal return, you still get the deduction because Kentucky income begins with Federal AGI.
In prior years, Kentucky would have added the Self-Employment Health Insurance Deduction back into income, and then re-subtracted it. This was done in case the Federal deduction was limited: KY used to allow you to claim a full deduction for all out-of-pocket health insurance premiums (whether self-employed or not), but now they do not.
This is why you didn't see the question on the return, but if you took the deduction on the Federal return, it is still deducted on the KY return. Here's an additional link with more information: KY Income tax Law Changes
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