A: COBRA is a federal law and applies regardless of residency.  COBRA is a continuation of your employers group health policy.  When your employers’ policy will not provide coverage in a different state because of an HMO or PPO, the employer is required to offer you an alternative coverage if there is one available.   The alternative coverage must be made available by the date you relocate or if later, the first day of the month after you request the alternative. You would be responsible for any additional cost that may occur with this alternative coverage.