"then it is not a trade or business reportable on Sch C"

And you accept that the Health Insurance isn't a deduction against that income, but a deduction, if it qualifies, on the 1040. It's not Self-Employed Health Insurance unless there is Self-Employment.

"in this situation one option is to pay the SE tax"

Which is not this topic.

You have two topics going, and they are about the two different aspects. Please go to the other topic to review your SE issues. Thanks.