Ky. auditor: Medicaid provider oversight needed

An organization that manages taxpayer-funded health services for Kentucky's poor and disabled spent freely on luxury hotels, meals, salaries, lobbying and consulting, a state auditor's report released Tuesday found.

The 200-plus-page report issued by state Auditor Crit Luallen calls for stricter accountability for Passport Health Plan, a Medicaid managed-care provider that serves 164,000 people in Louisville and more than a dozen nearby counties.

The audit comes as the state grapples with a $470 million shortfall in its Medicaid budget after a smaller-than-expected federal contribution.