In Georgia, it looks like* after using COBRA you are either entitled to a conversion policy and if one isn't available, the state provides a mechanism for you to buy a different policy.* According to Pilzer's online guide, he says for Georgia:
HIPAA-eligible individuals: Applicants must elect and exhaust available COBRA coverage. If the applicant is coming off a self-insured plan, the state assigns a private insurer to provide individual health insurance. If the applicant is coming off an employer plan provided by an insurance company, the insurer is required to convert coverage to an individual policy.
However, it seems like you just have to get your insurance company and your husband's employer to communicate.* Any way to get both the insurer and your HR person on a conference call together to figure this out?* If the insurance company doesn't require using COBRA, the company shouldn't care one way or another.* A resolution should be able to be reached.*
You should also read this site: http://www.healthinsurance.org/georgia/default.lasso
and for more information, contact the Georgia Insurance Department Consumer Services Division at 1-800-656-2298 or (404) 656-2070.
pm me if you want to talk more.