Relates to the functions of the Medicaid inspector general with respect to audit and review of medical assistance program funds

Added new definitions for 'Overpayment', 'Applicable standards', and 'Clerical or minor error or omission' to clarify what constitutes an error versus fraud.

Requires the Medicaid Inspector General to publish audit protocols and applicable standards on their website before starting an audit, giving providers advance notice of the rules being applied.

Mandates that the inspector consider a provider's financial solvency and potential impact on access to services when determining repayment amounts.

Prohibits the inspector from extrapolating small, isolated clerical errors (three or fewer) to the entire provider's claims, limiting recovery to only the specific affected claims.

Reorganized the audit standards section to prioritize the application of applicable standards and the provision of access to those standards prior to the audit.