Yes it does. You will need to create a custom income type at the company level with the following settings:
1- Title: S Corp Owners Insurance
2- Abbreviation: Sub S Medica (or any other abbreviation you see fit).
3- W-2 Box 14 Abbreviation: SubS M (or any other abbreviation you see fit).
4- Make sure to check the Box "Omit from Net Pay".
5- Typically all taxes apply to this income including Federal Income Tax and State Income Tax. Check with your state's taxation office for the taxability of Health insurance (S-corporation medical) benefits.
Once this custom income type is created you will need to apply it to your employee(s).