Governor calls for resignation after Medicaid audit

FRANKFORT, Ky. (AP) - Gov. Steve Beshear is demanding the resignations of top managers at the state's largest Medicaid provider after an audit found lavish spending by the company.

Beshear made the comments to reporters Wednesday after meeting with officials of the Louisville-based Passport Health Plan.

State auditors found that the organization had spent nearly $230,000 on travel and $73,000 on meals over the past three years, in addition to about $1 million for lobbying and public relations.

Passport received $793 million in state and federal money in the last fiscal year to provide medical care to needy residents in the Louisville area.

Dr. Larry Cook, chairman and chief executive officer of Passport, has said the agency made mistakes and was working to fix them.

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