Does anyone see any problems with an employer paying the COBRA premiums to an insurer for some terminated employees and not others.

Could this actually be construed as creating a new plan with additional COBRA rights? I would think that as long as the COBRA notice was given, no benefits need be offered after the 18 months no matter who pays the premium.

Would'nt this be setting a dangerous precedence? Could future Cobra participants demand equal treatment?

Right or wrong, I know of many employers who have chosen to pay COBRA premiums on behalf of various employees as part of a severance package. I do not see a problem with doing this. ScottN asked whether other employees could demand similar treatment - while they might try to, I do not know of anything that requires non-dicrimination in the application of COBRA.

Isn't employer payment of COBRA premium treated as taxable income?

Apparently not if part of a severance deal. PLR 9612008

To me that PLR does not cover the employee's portion of the premium, but I didn't study it that much.