[Congressional Record Volume 147, Number 133 (Friday, October 5, 2001)]
[Extensions of Remarks]
[Page E1816]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


             INTRODUCTION OF THE COBRA COVERAGE ACT OF 2001

                                 ______
                                 

                          HON. ADAM B. SCHIFF

                             of california

                    in the house of representatives

                       Thursday, October 4, 2001

  Mr. SCHIFF. Mr. Speaker, I rise today to announce the introduction of 
a piece of legislation that I believe is an essential component of our 
efforts to help those affected by the attacks of September 11th. My 
bill, the COBRA Coverage Act of 2001, will provide a 50 percent tax 
credit toward COBRA coverage for laid-off workers. I believe this is 
the best way for us to ensure that the thousands of Americans recently 
laid-off do not go without health insurance.
  Under current law, commonly referred to as COBRA, workers who are 
laid off are allowed to remain in their employer-based health insurance 
plan for up to 18 months, provided they pay the full premium for the 
plan (their share plus the employer share) plus a small administrative 
fee. The problem is, the full premium for employment-based coverage 
averages almost $2,500 per year for self-only coverage and about $6,500 
per year for family coverage.
  Since COBRA coverage is very expensive, many laid-off workers let 
their insurance lapse, gambling that they won't get sick or injured 
before they find another job. We cannot continue to allow so many hard-
working Americans and their families to go uninsured. We must find a 
way to make COBRA coverage more affordable for the thousands of laid-
off workers trying to recover from the September 11th attacks.
  And my bill does exactly that. The COBRA Coverage Act of 2001 
provides continuing health care coverage for laid-off workers at half 
the price. Under this legislation, laid-off workers would be eligible 
for a tax credit for 50 percent toward the COBRA coverage premium. The 
credit would be limited to a maximum of $110 for an individual and $290 
for a family per month, and would be administered by the employer. This 
way, workers can receive an immediate benefit and would not have to 
wait until the end of the year to claim tax credit.
  Now, more than ever, we must ensure that American families can afford 
to remain insured in case of sickness or injury. We must take the lead 
in ensuring that the thousands of hard-working Americans who have 
fallen victim to the effects of the September 11th attacks are not set 
back even further by the lack of health insurance. I urge my colleagues 
to join me in this effort to make COBRA coverage more affordable for 
our laid-off workers.

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