Articles Tagged ‘Obamacare’

Democrats Prepared to Cripple Private Insurance

Wednesday, October 14th, 2009

According to a report from Politico, Democrats have begun using the health care reform debate as a means to open fire on insurance companies, planning to remove a key provision that offers federal protection of their industry. Their efforts have been led by Sen. Chuck Schumer (D-NY) who “called for an amendment to the health care reform bill that would remove the long-standing antitrust exemption for insurers, echoing a push by other Democrats to crack down on the industry.”

“The health insurance’s antitrust exemption is one of the worst accidents of American history,” Schumer said. “It deserves a lot of the blame for the huge rise in premiums that has made health insurance so unaffordable. It is time to end this special status and bring true competition to the health insurance industry.”

Sen. Patrick Leahy, chairman of the Judiciary Committee, introduced a bill last month to remove the anti-trust exemption and convened a hearing Wednesday, where Schumer called for eliminating the exemption as part of the health bill working its way through Congress.

Schumer’s push comes on the heels of a controversial industry-sponsored report released over the weekend that makes the case that insurance premiums will go up by as much as $4,000 per family by 2019 if the Senate Finance Committee legislation is signed into law. The release of that report by the industry group America’s Health Insurance Plans sparked angry blowback from Democrats in both chambers.

Senate Majority Leader Harry Reid (D-NV) believes that this sort of punishment is “something that should have been done a long time ago.” 

“There isn’t anything we could do to satisfy them in this health care bill. Nothing,” Reid said. “They are so anti-competitive. Why? Because they make more money than any other business in America today. . . .What a sweet deal they have.”

Sen. Schumer is not alone in his fight to cripple the private insurance industry. According to the piece, top Democratic lawmakers in the House met in Speaker Nancy Pelosi’s office to discuss their maneuvering to garner support in their chamber of Congress to follow suit.

Insurance companies are not surprised at the move by Democrats in Congress to stifle their industry, recognizing that top Democratic lawmakers are forced to downplay recent discoveries of all the shortcomings in their push to overhaul the health care industry.

Health insurance officials dismissed the effort as a “political ploy.”

“Health insurance is one of the most regulated industries in America at both the federal and state level,” said Robert Zirkelbach, a spokesman for America’s Health Insurance Plans. “McCarran-Ferguson has nothing to do with competition in the health insurance market. The focus on this issue is a political ploy designed to distract attention away from the real issue of rising health care costs.”

Still, the push is likely to gather momentum as Democrats try to find a way to lash back at the insurance industry — whose report was viewed as a last-minute attempt to scuttle health care reform just days before Tuesday’s critical Senate Finance Committee vote. The legislation there was approved 14-9, with Republican Sen. Olympia Snowe of Maine voting yes and giving reform efforts a boost.

Leahy’s bill would repeal the exemption established in the 1945 McCarran-Ferguson Act for any companies engaged in price fixing or bid rigging — which are both already illegal. He has introduced similar legislation in other Congresses, including a broader repeal of the underlying law. Reid is a co-sponsor of the current bill.

In the House, where Democratic leaders are exploring the issue further, Judiciary Committee Chairman John Conyers (D-Mich.) has introduced legislation that would essentially end McCarran-Ferguson and give the federal government the right to regulate insurers at the national level.

 

Certainly, the attempt to further burden the insurance industry with excessive regulation will be fought by opponents of President Obama’s health care reform ambitions, and they will remind activists that any attempt to dismantle the private sector of medicine would inevitably decrease the quality of and access to health care for all Americans.

AP: Labor Unions Ready to Fire on Baucus Bill

Tuesday, October 13th, 2009

The Associated Press confirms what healthcarehorserace.com reported Wednesday: top unions are ready to launch an attack on Sen. Baucus (D-MT) and his health care reform bill that passed out of the Senate Committee on Finance today:

WASHINGTON — A top labor lobbyist says about 30 unions will run a full-page ad in newspapers Wednesday announcing their opposition to the Senate Finance Committee’s health overhaul bill.

 

The ad says that unless the bill brought to the Senate floor makes substantial progress to address the concerns of working men and women, unions will oppose it.

 

The legislative director of the American Federation of State, County and Municipal Employees, Chuck Loveless, says unions are unhappy that the legislation lacks a publicly run insurance plan and would tax insurers that provide expensive coverage.


Sponsors included the AFL-CIO and the Communications Workers of America. The ad will run in The Washington Post, USA Today and Capitol Hill newspapers.

HuffPo: Baucus to Blame for Health Care Overhaul Failings

Monday, October 12th, 2009

A recent blog entry at the Huffington Post highlights the progressives’ criticism of Senate Committee on Finance Chairman Max Baucus (D-MT) for the failings of the liberal health care reform agenda.

Blogger Chris Weigant complains that Sen. Baucus is responsible as being “almost as obstructionist as the Republicans in getting to the point we are at now. Meaning he is responsible for the dwindling amount of time we have left to get healthcare reform passed this year.” Indeed, this has been a common grievance of the far Left: leading Democratic lawmakers are to blame for not utilizing a hefty majority to make their dreams of a single-payer, universal health care system a reality.

Weigant worries that there is simply not enough time left in the legislative calendar to ensure the passage of an adequate, sweeping government plan that would overhaul the health care industry:

There are only two and a half months left in Congress’ legislative year. In this short period of time, Congress usually takes enormous chunks of time off for Thanksgiving and Christmas. So there just aren’t that many weeks left to pull this thing together. Reid, to his credit, has already cancelled a Senate week off for Columbus Day, but cancelling Thanksgiving and Christmas is a whole different ball of wax.

Weigant’s assessment is correct. There are plenty of procedural speed bumps that would mean that even if the bill is deemed favorable by a majority of Congress, an unlikely fate at best,  the unavoidable legislative route would take plenty long enough and could disrupt Leftists’ ambitions for a speedy takeover.

The article isn’t shy about pointing the finger at Sen. Baucus, ultimately blaming the Finance Committee chair for what seems to be a likely doom for the hopes of progressives everywhere, thanks in part, Weigant argues, for his attempts at bipartisanship:

But whatever the chances are, and however it is handled by the congressional leadership, the point is we just wasted two and a half months. And by “we,” I mean “Senator Max Baucus.” Before August happened, the talk was all of “bipartisanship” (ah, those naive days of early summer…) and the “Gang of Six,” who were going to hammer out a bill that lots of Republicans would vote for. By the end of August, the Republicans were all but smirking into their sleeves on national television saying: “We were never going to vote for anything that would help Obama politically, and we just burned up a month proving that to the Democrats.”

But then, even after we got to that point, we then sat through another month and a half of delay. And that delay can be laid at the feet of Max Baucus. Is the bill the Finance Committee going to vote on tomorrow substantially different than what they had at the beginning of September? No, it is not. Is it substantially better? No, it is not. Is it going to win over any Republican votes (other than, perhaps, Olympia Snowe)? No, it is not. Were those six weeks wasted? Yes, they were.

Which gave time for the healthcare industry to mobilize against Baucus’ bill. Meaning Baucus is largely responsible for the attack coming now.

And while the far Left is busy demonizing Sen. Baucus, it’s pretty certain that the majority of American people are exhaling a large sigh of relief, thankful that the bill, as bad as it is now, is at least somewhat better than the deepest held hopes of progressives: a complete and utter destruction of the private sector to level the playing field by making health care equally as awful for everyone.

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Senate Democrats Shield Constituents from Tax Burdens of Health Care Reform

Friday, October 9th, 2009

According to a report from Kimberly A. Strassel of the Wall Street Journal, some Senate Democrats have supported health care reform, so long as their own constituents don’t have to pay for it:

How good is Sen. Max Baucus’s health reform bill? So good that Democrats have made sure some of the most costly provisions don’t apply to their own states.

The Senate Finance Committee is gearing up for a final vote next week, and Chairman Baucus now appears to have the Democratic votes to pass his bill. Getting this far has of course meant cutting deals, and those deals, it turns out, are illuminating. The senators are all for imposing “reform” on the nation, so long as it doesn’t disadvantage their constituents.

A central feature of the Baucus bill is the vast expansion of state Medicaid programs. This is necessary, we are told, to cover more of the nation’s uninsured. The provision has angered governors, since the federal government will cover only part of the expansion and stick fiscally strapped states with an additional $37 billion in costs. The “states, with our financial challenges right now, are not in a position to accept additional Medicaid responsibilities,” griped Democratic Ohio Gov. Ted Strickland.

Poor Mr. Strickland. If only he lived in . . . Nevada! Senate Majority Leader Harry Reid, who is worried about losing his seat next year, worked out a deal by which the federal government will pay all of his home state’s additional Medicaid expenses for the next five years. Under the majority leader’s very special formula, only three other states—Oregon, Rhode Island and Michigan—qualify for this perk, on the grounds, as Mr. Reid put it recently on the Senate floor, that they “are suffering more than most.”

Tell that to Mr. Strickland, who is still trying to figure out how to close an $850 million budget hole, in a state with near 11% unemployment. And tell it to Republican Sen. Lamar Alexander, who quipped: “I wonder how citizens in Wyoming, in California and Florida and other states will feel if they pay more taxes so that Nevadans can pay less taxes.”

To pay the bill for his version of ObamaCare, Mr. Baucus’s legislation would tax high-value insurance plans—a 40% tax on plans that cost more than $21,000 a year. Democrats argue it is reform to make those who can afford “luxury” health care chip in for those who can’t afford any at all.

That is, unless you live in a state such as New York. That state, along with some others, has many high-value plans—in part because it boasts a lot of union members with “Cadillac” plans, in part because the state has imposed so many insurance regulations that even skimpy plans are expensive. Sen. Chuck Schumer didn’t want a lot of angry overtaxed New Yorkers on his hands, so he and other similarly situated Democrats carved out a deal by which the threshold for this tax will be higher in their states. If you live in Kentucky, you get taxed at $21,000. If you live in Massachusetts you don’t get taxed until $25,000. This carve-out is at least more sweeping, applying to 17 (largely blue) states, though that’s cold comfort if you live in Louisville.

Mr. Baucus will also pay for his bill by socking it to pharmaceutical companies, on the principle that drug companies are filthy rich and should have to contribute to health care. The view is a bit different in New Jersey. The state’s Web site boasts it is the “global epicenter” of the drug industry, where “15 of the world’s 20 largest pharmaceutical companies have major facilities.” And Sen. Bob Menendez, of the Garden State, seems concerned that his home-state employers are going to struggle to both pay their federal liabilities and to continue to grow and innovate. Thus Mr. Menendez’s quiet deal for a $1 billion tax credit for companies investing in drug R&D.

The Baucus bill, we are assured by many Dems, will successfully “bend down” the health-care cost curve. Michigan Sen. Debbie Stabenow isn’t counting on it when it comes to her constituents. She and Massachusetts Sen. John Kerry included $5 billion in the bill for a reinsurance program designed to defray the medical costs of union members.

“This will help our employers, whether it’s the auto industry or whether it’s other industries, be able to lower their costs for early retirees,” said Ms. Stabenow. She is apparently unaware that this is what the broader bill is supposed to do, even without $5 billion in union slush money.

So, health-care “reform” is good, smart and necessary, so long as it isn’t fully applied to the states of the senators who are pushing it. The Democrats’ growing problem is that somebody is ultimately going to have to pay, and Mr. Reid’s bad example has given every one the same idea. “If Colorado has a fair claim on being treated the same way Nevada has been, of course we’re going to ask to have that kind of treatment,” promised Sen. Mark Udall, upon news of the Reid deal.

Most senators are saving up their special state demands for when the bill hits the Senate floor. At that point, we’ll get an even better idea of how much health-care change Democrats truly believe in.

Jindal Offers Conservative Reforms, Condemns Liberals for Willful Ignorance

Monday, October 5th, 2009

Governor Bobby Jindal of Louisiana is a powerful player within the Republican Party and not just due to his presidential prospects. Jindal is a noted health care expert, who prior to serving as governor of the Pelican State, filled many positions in policy on the issue.

In an editorial in the Washington Post Sunday, Governor Jindal explains that public opinion has been solidly opposed to the health care reform agenda of the White House and the Democrats in Congress, but that doesn’t seem to deter them one bit from pushing legislation that would create a complete government overhaul of the system.

But memo to Washington: The debate on health care has moved on. Democratic plans for a government takeover are passé. The people don’t want it. Believe the polls, the town halls, the voters. Only Democrats in Washington would propose new taxes on businesses and families in the middle of a recession, $900 billion in new spending at a time of record deficits, and increased taxes on health insurance and products to reduce health-care costs.

Washington is the only place in the country that doesn’t realize that this debate is over. Democrats may march forward anyway, but they will do so without the people, and at their own peril.

Still, Governor Jindal argues, there is a need for reform- just not the kind of reform that would compromise the rights of patients and their doctors.

Yet hope for meaningful reform need not be lost. Only two things need to happen. First, Democrats have to give up on their grand experiment and get serious about bipartisan solutions. Second, Republicans have to join the battle of ideas.

To be clear, the Republicans in Congress who have led the opposition to the Obama-Pelosi vision of health-care reform have done the right thing for our country. If they had rolled over, the results could have been devastating for our health-care system and our nation’s budget.

But Republicans must shift gears. Conservatives should seize the mantle of reform and lead. Conservatives either genuinely believe that conservative principles will work to solve real-world problems such as health care or they don’t. I believe they will.

The people do not want Republicans to offer their own thousand-page plan to overhaul health care, and that is not what the nation needs.

Here are Governor Jindal’s recommendations that would create free market-based and patient-centered reforms that would lower costs, improve quality and increase accessibility to health care:

  1. Create voluntary purchasing pools, where individuals and small businesses can seek lower insurance costs, the same way the government and large corporations do.
  2. Allow insurance portability, where patients act as consumers, purchasing their insurance across state lines (currently illegal). This open the market to broader competition, thereby reducing the costs for policyholders.
  3. Mandate tort reform, shielding doctors from unnecessary  lawsuits, which would drive down the cost of their liability insurance. The savings would be passed onto consumers and many high-risk, life-saving procedures will once again be embraced.
  4. Require coverage for pre-existing conditions, incentivizing companies to “focus on delivering high-quality effective care, not to avoid covering the sick.”
  5. Demand transparency and payment reform, offering patients access to quality and cost assessments. This, he argues, will encourage efficiency and quality.
  6. Develop electronic medical records to alleviate the threats to patient privacy and higher costs that result from the current system of paper records.
  7. Encourage tax-free health savings accounts. Currently, “HSAs have helped reduce costs for employers and consumers.” However, today’s regulations “discourage individuals and small businesses from utilizing HSAs.” 
  8. Reward healthy lifestyle choices by providing premium rebates and other incentives for policyholders who take an active role in maintaining their well-being.
  9. Cover young adults, one of the largest populations of the uninsured, by permitting them to stay on their parents’ policies longer.
  10. Institute refundable tax credits for the uninsured and those who would benefit from greater flexibility of coverage. Jindal says that “redirecting some of the billions already spent on the uninsured will help make non-emergency care outside the emergency room affordable for millions” and claims that tax credits would “provide choice of coverage through the private market, rather than forcing people into a government-run system.”

Jindal closes his editorial with this:

In short, ideas matter. The public is interested in solutions that will improve America’s health-care system, not dismantle it. Republicans can lead on this.

Despite lacking a majority, the GOP has earned increased approval ratings and their ideas have been embraced by the American public. Clearly, reasons like those provided by Governor Jindal are what Americans want. And unfortunately, as he points out, the Democrats simply aren’t listening.

Rasmussen: 63% of Americans Fear Losing Health Plan With Obamacare

Sunday, October 4th, 2009

Based on the responses of one thousand likely voters to a Rasmussen survey conducted over the telephone nationally, sixty-three percent of respondents said they believed that guaranteeing no one would be forced to change their health insurance coverage was a far greater priority than simply handing American citizens, as well as illegal aliens, the choice of a public-option health insurance plan. Only twenty-nine percent of those surveyed took the opposite position.

Despite reassurances from President Obama that if you like your current health care coverage you can keep it under his health care reform proposal, fifty-three percent of insured voters remain convinced that it is likely they would have to change their health insurance coverage should the bill, proposed by the president and supported by progressives, were to become law. This helps clarify, if but a little, the confusion over why, if fifty-four percent of Americans agree that this country’s health care system needs major changes, only forty-one percent support the president’s comprehensive reform agenda.

Favor for the creation of a government-run non-profit health insurance option stood at forty-six percent when respondents were asked whether they would choose that rather then a private health insurance plan. When these same individuals were then asked about the creation of a public-option should it be known that it would encourage companies to drop private health insurance coverage for workers, however, support dropped drastically to twenty-nine percent.

In addition to this, slightly more then half of likely voters, fifty-three percent, believe the government-run public-option system would cost taxpayers money. Again, this despite repeated claimed made by the White House and the Congressional Democratic leadership that this would not be the case. Not surprisingly, the greatest support for the idea that President Obama’s plan would cost taxpayers more then their current health care coverage came from seniors, sixty-two percent of which said costs would increase under the proposal. And, finally, slightly less then half of likely voters, forty-eight percent, believe health insurance companies would still provide better quality service and more choices than a government-run public-option system.

Senate Committee on Finance Approves State-Based Public Option Plan

Sunday, October 4th, 2009

Just when the majority of Americans thought they could sleep a little easier since the Senate Committee on Finance squashed the so-called public option, they approve of another version of it just Thursday. 

That’s right, ladies and gentlemen. The public option passed the Senate Committee on Finance Thursday. But, it’s not “nationalized health care.” You see, Sen. Max Baucus (D-MT) and his cohorts on the Left passed an amendment that would create a state-based public option program, a measure proposed by Sen. Maria Cantwell (D-WA).

“This proposal is about giving federal dollars to the states and putting them in the driver’s seat,” Cantwell said. “It is a public plan, but negotiated with the private sector.”

All Democrats except Sen. Blanche Lincoln (Ark.) voted to support the Cantwell amendment and all Republicans voted against it. Baucus, who has resisted adding a public option of any kind to his bill based on the argument that there is not enough support in the Senate, was enthusiastic about Cantwell’s proposal. “This is a great amendment,” he said.

Sen. Baucus believed that there wasn’t enough support for a federal public option, but now he backs a state public option. After governors on both sides of the aisle resisted co-operatives for the enormous entitlement strain they would create, it is doubtful they would throw support behind this measure either. With states so heavily (and disproportionately) subsidizing health care infrastructure locally, the state-based public option would only further deplete their already barren coffers, which would serve as yet another excuse to raise taxes. When the federal government doesn’t kick enough money to state X, its lawmakers will have to find a way to fund it.

Still, all Democrats but Sen. Blanche Lincoln of Arkansas voted for the amendment, indicating they believe they could garner support for shifting the financial and regulatory burden of health care to the states. Politically, it makes sense. After all, the Democrats have to pass something, or risk President Obama facing his, as Sen. Jim DeMint (R-SC) called it, Waterloo. But, if the program fails, Congress can dodge the blame and instead point to the failures of individual states.

Here are the “nuts and bolts” of the plan:

Under the Cantwell amendment, people with incomes between 133 percent and 200 percent of the federal poverty level who do not get insurance at work would enroll in these state-based programs. The federal tax credits that would otherwise have been given to those individuals would instead be paid to states to finance the plan. Cantwell based her amendment on a program in Washington state.

States could choose to set up their plans, which would negotiate with medical providers on payment rates rather than base them on Medicare’s fees, as other public option plans would do. Cantwell and Baucus said the amendment would save money. “We are putting someone in charge, finally, of negotiating rates,” Cantwell said.The benefits offered by these state plans would have to be at least as good as under Medicaid or through a private plan sold through the health insurance exchange in the legislation.

Republicans complained that any claims that the state plans would save money were purely speculative because Cantwell’s amendment has not been scored by the Congressional Budget Office (CBO). “There is no CBO score to tell us that,” said Sen. Jim Bunning (R-Ky.). “We don’t know that.” Republicans also pointed out that Baucus had ruled numerous GOP amendments out of order because there were not CBO scores.

So, an amendment that has not been scored by the Congressional Budget Office is going to be sandwiched in the Baucus health care bill, an amendment that would obligate states to more entitlements and more bureaucracy. The government is going to negotiate rates. Oh, and those tax cuts have been eliminated, too. Splendid. Just splendid.

WAIT! Didn’t Obama Say There Wouldn’t Be an Abortion Provision?

Thursday, October 1st, 2009

In his address to Congress September 9, 2009, President Obama complained that the American people have been misled about his health care reform agenda. He explained that any bill he would sign would not include provisions for coverage for illegal immigrants and abortion services.

When Congressman Joe Wilson (R-SC) proclaimed “You lie!” at the claim regarding immigrants’ health care, the Left hollered for an apology. Turns out he just might have been right, as there is solid support from Congressional progressives to offer a government insurance plan for both legal and illegal immigrants.

Now, Senate Democrats (plus near-Democrat Sen. Olympia Snowe [R-ME]) blocked two anti-abortion amendments by Sen. Orrin Hatch (R-UT), clearly negating the President’s parameters for health care reform legislation. 

The sparring over abortion Wednesday underscored the sweep of the health legislation, which not only makes fundamental changes to a key segment of the U.S. economy, but also inflames passions on a range of social issues.

Mr. Baucus said he didn’t want to add abortion to the debate. “This is a health-care bill,” he said. “This is not an abortion bill. We are not changing current law.”The legislation sets up subsidies for lower-income people to buy insurance and makes the subsidies subject to existing limits on federal funding of abortion. Those limits, enacted annually in routine government spending bills, bar the use of federal funds, except in cases of rape, incest and saving the life of the mother. Under the Baucus bill, private health plans would be required to prevent federal insurance subsidies from mingling with any private funds used for abortions.

But Sen. Orrin Hatch (R., Utah) said the limits in the current law could easily lapse. He called on Mr. Baucus to fold the language into the health bill, making it permanent law. “Let’s codify it,” he said.

The other amendment proposed by Sen. Hatch would have protected doctors and medical facilities who opted out of performing abortions. This also failed.

Abortion-rights supporters said the rights of women were in danger. “This is not maintaining the status quo,” said Sen. Maria Cantwell (D., Wash.). “It is a major, major change, and a poison pill.”

The Hatch amendment failed 13-10 on a mostly party-line vote. Sen. Olympia Snowe (R., Maine) joined Democrats in opposing it, while Sen. Kent Conrad of North Dakota was the lone Democrat in favor.

The panel also rejected an amendment Mr. Hatch said was needed to ensure the government doesn’t discriminate against health-care providers who refuse to perform abortion procedures for moral or religious reasons.

The American people should pay attention. Not only are the White House and Congressional Democrats turning a deaf ear to their opposition to a government of health care and willfully ignoring the concerns of the people, they are also not even making the slightest attempt to adhere to the promises made to the American people. What happened to representative government again?

PSA Alerts Public of “Lack” of Celebrity Input on Health Care Reform

Thursday, October 1st, 2009

This pithy video mocks the arrogance of many overpaid celebrities who feel themselves tasked to share their “expertise” on health care reform with the American people. As the clip says, who better to determine the course of the legislation than the folks who just “play one [a doctor] on TV?”

Senate Republican Policy Committee: Baucus Proposals Would Break Obama Pledge

Tuesday, September 29th, 2009

The Senate Republican Policy Committee (SRPC) has released an analysis that they believe indicates that the proposals of Sen. Max Baucus (D-MT) break the pledge President Obama made to the American public that his health care initiatives would not increase taxes on the middle class.

According to the SRPC, the Joint Committee on Taxation and the Congressional Budget Office have both confirmed that “at least 71 percent of the individual mandate penalties in the Baucus bill would fall on the backs of Americans earning less than $250,000.” They argue that if the bill were to pass, it would “directly violate the President’s pledge on the campaign trail that he wouldn’t raise taxes on families earning less than $250,000 “one single dime.‘”

The table below indicates that at least $2 billion of the $2.8 billion raised from the fines imposed upon those choosing not to purchase insurance in 2016 would “come from Americans earning less than 500 percent of the Federal Poverty Line, or $120,000 for a family of four ($59,000 for a single person).” The SRPC concludes that at least a portion of the remaining $800 million  in penalties from those earning more than 500 percent of the poverty line will come from families who earn less than $250,00 annually. The table does not estimate how much, though.

Check out the Distribution of Penalties in 2016.

 

Individual Mandate Penalties

AGI Relative to the

Total

Share of

Federal Poverty Level (FPL)

Payments

Payments

 

($ billions)

(%)

Less than 100% ($24k)

0.0

0

100% to 200% ($24k to $48k)

0.6

20

200% to 300% ($48k to $72k)

0.6

20

300% to 400% ($72k to $96k)

0.5

18

400% to 500% ($96k to $120k)

0.3

12

Greater than 500% ($120k+)

0.8

29

Total

2.8

100

 

 

 

 

 


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