Audit Finds Questionable Spending at Passport

LOUISVILLE, Ky. – State Auditor Crit Luallen is criticizing a nearly $800-million a year contract Kentucky has with a Louisville-based, Medicaid managed-care provider. Luallen says auditors found that as Passport Health Plan's excess revenues grew, so did questionable spending on travel, gifts, lobbying and salaries.

"Auditors found that UHC, or Passport staff, traveled frequently, stayed in luxury resorts, used limousine services, ate expensive meals and purchased numerous gifts - all with funding received from Medicaid and many without a clear business purpose."

But Luallen says no criminal intent was found and the findings in the 229-page audit won't be referred to authorities.

In a 14-page response, the Cabinet for Health and Family Services agrees with most of the audit findings and promises to develop a Corrective Action Plan.