I imagine it does. When we killed Amber on 25, we had no problem with the debuff. If it's a mage, pally, or rogue that gets the debuff they can get rid of it right away. Other just have the person get out of aoe heals and use a cooldown. If they get below ~30% you can just toss a Divine Light on them.
Yeah I kinda figured it would, it would be too OP for it not to but you never know with these things there is often gimmicks that bypass mechanics.
I will test it tonight, I didn't think of it last week I just sac'ed the person if they started taking too much damage. Also had people who could remove it do so, rogues, mages, pallies.
It seemed like our healers were still throwing a few heals on the debuffed people. And when I threw a DL on them, it didn't make a difference at all damage wise.