To amend the Internal Revenue Code of 1986, the Employee Retirement Income Security Act of 1974, and the Public Health Service Act to extend the basic period for health care continuation coverage from 18 months to 5 years, to permit a further extension of continuation coverage for individuals age 55 or older, and to provide for a 50 percent refundable tax credit towards premiums for COBRA continuation coverage.

COBRA Coverage Extension and Affordability Act of 2001 - Amends the Internal Revenue Code, the Employee Retirement Income Security Act of 1974 (ERISSA), and the Public Health Service Act to: (1) extend basic COBRA health care continuation coverage to 60 months; and (2) permit a further extension of continuation coverage for persons 55 years or older. Amends the Internal Revenue Code to provide a 50 percent refundable tax credit for COBRA continuation coverage premiums.