Sure does.
Yeah. When it was first announced it got a bit of mockery on the forums for being a "Rocking the Aura" power, and I have to admit I was a bit dubious about it.
After playing it, I realised that the beauty of it is that it takes zero animation time. You're constantly healing yourself at a low-ish rate while fighting, running away, moving to the next group or whatever, and breaking sleep on any allies nearby with the Corrupter version. You don't cause redraw by using it, as my latest Beam Rifle/pain character can attest. I think its one of the gems of the Pain set.
Does this toggle heal you as well as your teammates?