Jeffords Statement on Markup of Senate Economic Package

November 8, 2001

[2] COBRA provides an existing mechanism to allow these laid- off workers the opportunity to keep their health insurance while they seek new employment. For all of its strengths, COBRA has some significant deficiencies. While it allows those who've lost their job to keep their health insurance coverage, it requires them to pay the entire premium at a time when they have no income. The high cost of COBRA is the major reason cited for the fact that only 18 percent of eligible enrollees utilize their coverage option.

[3] Legislation that I introduced, "the COBRA Plus Act of 2001," solves this problem. It provides a 50 percent subsidy for the individual's health insurance premium. This subsidy would be a refundable tax credit, which means it is available regardless of one's tax liability, and the credit could be advanced directly on a monthly basis to the individual's employer or health insurance plan. By relying on the tax code, rather than program expansion, the credit will go directly to individuals and thereby encourage a sense of personal responsibility in health care.

[4] In my home state of Vermont, as is the case across the country, recent events have put the security of a well-paid job with health insurance coverage at risk. It is important that we here in Congress help to restore confidence in the fundamental strength of our nation's economy. Americans should know that they will still have productive jobs with health insurance coverage for their families now and into the future.

[5] Mr. Chairman, I am supporting your package not because I support every provision, but because I think this legislation is a good first step along the road to getting an economic stimulus package enacted.

[6] As this legislation moves to the Senate floor, we need to work in a bipartisan basis, with the administration, to develop an economic stimulus package that reflects the three principles spelled out by Secretary O'Neill. The package must restore consumer confidence. For with the restoration of confidence, the American people will again begin buying our nation's goods and services. We must also support increased business investment. Business investment is what creates new jobs and is the engine of our economy. And finally, and I think most importantly, we must help those individual Americans who lost their jobs as a consequence of the terrorist bombings of September 11th.