Yes of course they can and it is very common. Insurance companies do require that the employer contribute a minimum of 50% of the premium.

People often ask me “what is normal” or “what do other employers like me do”.

A good answer to that is a question:  What is it you are trying to accomplish?

For example if you are trying to attract high quality skilled workers to your company or maybe you want give your employees a tax free raise,  then paying 100% of the premium is appropriate.
If you are trying to match a parallel union plan or employees are begging for a plan, then a 50/50 split of the costs are quite common.

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