Former employee elects COBRA but later starts own company

[Guest cease]

Employee terminates employment with Company A. Employee elects COBRA continuation for medical coverage. Employee pays Company A monthly premium. Employee starts his/her own Company B. Can employee:

1. Continue with medical coverage of Company A through COBRA, subject to the maximum coverage period?

2. Can he/she deduct this premium from self-employment compensation earned through Company B?

Appreciate your responses.

[Guest bmaverick2]

COBRA continues until there is an event that permits the sponsor to terminate coverage. Failure to pay the premium timely, being covered under another plan. In your fact pattern, there is no other plan. No plan is being instituted.

Regarding deductibility, Not on Schedule C, not a "employer" plan for self-employed, likely permitted as health insurance individually currently fully deductible.