Medicaid Contractor Vows Reform

Frankfort – A private contractor that manages health care services for Kentucky state government is promising new rules and management. Passport Health Plan receives public dollars to manage Medicaid plans in Jefferson and 15 surrounding counties. A recent state audit found millions of dollars in questionable spending on meals, travel, and lobbying. Board chairman and CEO Larry Cook says while it's possible some of Passport's money was misspent, the transfers were legal.

"We feel we exercised all due process. We do not feel we have violated IRS rules or Kentucky law and I'm certain that issue will be explored by the parties."

Cook says Passport plans to reimburse the state for any misspent funds. The board will also hire and interim CEO to relieve Cook of his duties, though he will remain on the board.