is there a lapse

i have been in the hospital for two months begining july 7. i did not qaulify for FMLA and my employer gave me thirty days of leave and i would have to pay my insurance premium by july 25. i did that and after 25 days my doctors told me i would be there for one to two months more. i called my employer and asked for a one month extension and was told they needed it in writing and they wanted a letter from my doctor. Both letters were sent out the next day. After waiting two and a half weeks for a response i had to call them. I was told that the info from my doc was not enough and they would discuss it and get back to me on aug. 25. today they called and said they will not give me an answer until monday Aug. 31. This is the day my insurance runs out. can they do this? if i sign up for cobra will there be a lapse in coverage? i am in a special treatment program and without insurance they will throw me out! please help!!!!!