You seem to be relating things that don't relate.

Sched C has the provision for SE Health as a deduction, which provides parity to those covered under an employer plan. This deduction cannot exceed the business reported taxable income; it can't be used to create a loss.

1040 has the provision for those who itemize to include their Medical care plan coverage (private, marketplace, medicare) to deduct the premiums that exceed the minimums, if they are itemizing and not taking the Standard Deduction. This is only the overflow from the amount a business person is reporting as "above the line" deduction (the previous paragraph) to avoid double-dipping.

Form 8695 was used to claim exemption for the ACA requirement, which is moot, now, because of the court ruling.