The bill establishes new regulations for Medicaid audits in Oklahoma, aimed at providing protections for health care providers during the audit process. Key provisions include requiring auditors to give at least one week's advance notice before conducting an audit, ensuring that audits involving clinical judgment are performed by specialists in the same field, and limiting the scope of audits to specific claims or a defined number of claims. The bill also prohibits the use of extrapolation in calculating recoupments or penalties, and it outlines a clear appeals process for health care providers to contest unfavorable audit findings.

Additionally, the legislation specifies that clerical or recordkeeping errors will not be classified as fraud without proof of intent, and it mandates that recoupments can only occur after a claim has been corrected. Health care providers will have a minimum of 60 days to address discrepancies found in audits, and the entire audit process, including the appeals, must be completed before any disputed funds can be recouped. The bill is set to take effect on November 1, 2026.