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In case of l1b rejection and spouse is pregnant

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Currently, my L1B visa extension is in progress and status is in "My case was received" for past 5 months. I am well under my 240 days grace period (23-OCT-19) and I94 expiry (18-JAN-21). I have a personal situation, my spouse is 34 weeks pregnant and doctor denied to certify for her to travel in this situation. In an unfortunate situation if my extension is rejected can we stay till her due date around August end with the I94 that I have? and also will I be able to continue in my current health insurance plan?

Note: I check with my employer for COBRA insurance but they said in that case COBRA will not be applicable since it is not termination, its transfer to INDIA so COBRA wont cover my insurance. Please let me know if other options are available

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Why was it necessary to file an extension now as you presumably have a blanket L1 visa which explains the I94 expiring in January of 2021?

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