USA Cobra

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Are EE COBRA premium contributions allowed as a pretax payroll deduction?

We recently hired a new employee and have agreed to subsidize his COBRA premium payments (EE- 35%, ER - 65%) as he feels that his former employer's insurance provides better coverage for his family than our company sponsored plan. The company subsidizes the sponsored health insurance plan with the same EE/ER breakdown as above.

Can the company treat the EE contribution to the monthly COBRA premium as a pretax payroll deduction? The company will make the full monthly premium payment directly to the insurer and no money will be actually "reimbursed" or given directly to the employee.
 
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