Purchaser shows commitment to Commonwealth, continuing vital health care services
FRANKFORT, KY. (July 29, 2019) – Attorney General Andy Beshear announced today that the pending Passport Health Plan purchase has been reviewed and cleared by his office.
Passport Health Plan is a Louisville nonprofit, community-based health plan administering Kentucky Medicaid and Medicare benefits. The anticipated purchaser, Evolent Health Inc., is a for-profit company that provides health care delivery and payment solutions in the U.S. Evolent has provided services to Passport since 2016.
In a letter sent to Passport’s attorney, Beshear’s office writes their review of the materials related to the purchase does not indicate that the purchase is detrimental to the interests and welfare of the Commonwealth or its citizens. Beshear’s office acknowledges Evolent’s commitment to Louisville, retaining many employees and minimizing disruption of health care services. The anticipated purchase will also result in the protection of Passport’s charitable assets.
“While I disagreed with the deep cuts Governor Bevin made to Passport’s rate and his hostile attempt to cripple the state’s largest Medicaid market,” Beshear said. “I believe this purchase will help ensure our most vulnerable citizens continue to receive the care they need and deserve.”
Evolent’s commitment to efforts to complete the development of a West End campus in Louisville and to relocate its principle office at the campus is recognized in the letter. The letter states that Evolent commits to retain many of Passport’s current employees, and that the existing relationship between it and Passport would result in minimal disruption of the health care coverage of more than 300,000 members of Passport and minimal disruption for thousands of health care providers.
Under state law, the Office of the Attorney General is the watchdog for charitable assets of nonprofit corporations. In Passport’s case, the anticipated purchase will result in the distribution of $70 million of such assets to the nonprofit sponsors of Passport, and another guaranteed distribution of $20 million to those sponsors and potentially more. This ensures the charitable assets will be protected.
“Our review aims to ensure these assets were not lost or placed into the hands of a private company, which would have been detrimental to Kentuckians,” Beshear said.
In May, Evolent announced it had agreed to buy a majority ownership stake in Passport.
While the Office of the Attorney General’s charitable asset review is complete, the anticipated transition remains pending until closing, which is currently on track for November.
####