1 | 1 | | 1.1 A bill for an act |
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2 | 2 | | 1.2 relating to human services; requiring medical assistance coverage of drugs covered |
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3 | 3 | | 1.3 by a primary third-party payer; requiring coverage of in-network services by |
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4 | 4 | | 1.4 medical assistance regardless of network or referral status for a primary third-party |
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5 | 5 | | 1.5 payer; amending Minnesota Statutes 2024, sections 256B.0625, subdivisions 13, |
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6 | 6 | | 1.6 25b; 256B.37, subdivision 5. |
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7 | 7 | | 1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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8 | 8 | | 1.8 Section 1. Minnesota Statutes 2024, section 256B.0625, subdivision 13, is amended to |
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9 | 9 | | 1.9read: |
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10 | 10 | | 1.10 Subd. 13.Drugs.(a) Medical assistance covers drugs, except for fertility drugs when |
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11 | 11 | | 1.11specifically used to enhance fertility, if prescribed by a licensed practitioner and dispensed |
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12 | 12 | | 1.12by a licensed pharmacist, by a physician enrolled in the medical assistance program as a |
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13 | 13 | | 1.13dispensing physician, or by a physician, a physician assistant, or an advanced practice |
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14 | 14 | | 1.14registered nurse employed by or under contract with a community health board as defined |
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15 | 15 | | 1.15in section 145A.02, subdivision 5, for the purposes of communicable disease control. |
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16 | 16 | | 1.16 (b) The dispensed quantity of a prescription drug must not exceed a 34-day supply unless |
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17 | 17 | | 1.17authorized by the commissioner or as provided in paragraph (h) or the drug appears on the |
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18 | 18 | | 1.1890-day supply list published by the commissioner. The 90-day supply list shall be published |
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19 | 19 | | 1.19by the commissioner on the department's website. The commissioner may add to, delete |
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20 | 20 | | 1.20from, and otherwise modify the 90-day supply list after providing public notice and the |
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21 | 21 | | 1.21opportunity for a 15-day public comment period. The 90-day supply list may include |
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22 | 22 | | 1.22cost-effective generic drugs and shall not include controlled substances. |
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23 | 23 | | 1.23 (c) For the purpose of this subdivision and subdivision 13d, an "active pharmaceutical |
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24 | 24 | | 1.24ingredient" is defined as a substance that is represented for use in a drug and when used in |
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25 | 25 | | 1Section 1. |
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26 | 26 | | REVISOR AGW/AC 25-0275502/06/25 |
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27 | 27 | | State of Minnesota |
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28 | 28 | | This Document can be made available |
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29 | 29 | | in alternative formats upon request |
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30 | 30 | | HOUSE OF REPRESENTATIVES |
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31 | 31 | | H. F. No. 668 |
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32 | 32 | | NINETY-FOURTH SESSION |
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33 | 33 | | Authored by Hicks and Curran02/13/2025 |
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34 | 34 | | The bill was read for the first time and referred to the Committee on Health Finance and Policy 2.1the manufacturing, processing, or packaging of a drug becomes an active ingredient of the |
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35 | 35 | | 2.2drug product. An "excipient" is defined as an inert substance used as a diluent or vehicle |
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36 | 36 | | 2.3for a drug. The commissioner shall establish a list of active pharmaceutical ingredients and |
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37 | 37 | | 2.4excipients which are included in the medical assistance formulary. Medical assistance covers |
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38 | 38 | | 2.5selected active pharmaceutical ingredients and excipients used in compounded prescriptions |
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39 | 39 | | 2.6when the compounded combination is specifically approved by the commissioner or when |
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40 | 40 | | 2.7a commercially available product: |
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41 | 41 | | 2.8 (1) is not a therapeutic option for the patient; |
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42 | 42 | | 2.9 (2) does not exist in the same combination of active ingredients in the same strengths |
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43 | 43 | | 2.10as the compounded prescription; and |
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44 | 44 | | 2.11 (3) cannot be used in place of the active pharmaceutical ingredient in the compounded |
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45 | 45 | | 2.12prescription. |
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46 | 46 | | 2.13 (d) Medical assistance covers the following over-the-counter drugs when prescribed by |
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47 | 47 | | 2.14a licensed practitioner or by a licensed pharmacist who meets standards established by the |
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48 | 48 | | 2.15commissioner, in consultation with the board of pharmacy: antacids, acetaminophen, family |
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49 | 49 | | 2.16planning products, aspirin, insulin, products for the treatment of lice, vitamins for adults |
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50 | 50 | | 2.17with documented vitamin deficiencies, vitamins for children under the age of seven and |
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51 | 51 | | 2.18pregnant or nursing women, and any other over-the-counter drug identified by the |
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52 | 52 | | 2.19commissioner, in consultation with the Formulary Committee, as necessary, appropriate, |
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53 | 53 | | 2.20and cost-effective for the treatment of certain specified chronic diseases, conditions, or |
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54 | 54 | | 2.21disorders, and this determination shall not be subject to the requirements of chapter 14. A |
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55 | 55 | | 2.22pharmacist may prescribe over-the-counter medications as provided under this paragraph |
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56 | 56 | | 2.23for purposes of receiving reimbursement under Medicaid. When prescribing over-the-counter |
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57 | 57 | | 2.24drugs under this paragraph, licensed pharmacists must consult with the recipient to determine |
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58 | 58 | | 2.25necessity, provide drug counseling, review drug therapy for potential adverse interactions, |
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59 | 59 | | 2.26and make referrals as needed to other health care professionals. |
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60 | 60 | | 2.27 (e) Effective January 1, 2006, medical assistance shall not cover drugs that are coverable |
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61 | 61 | | 2.28under Medicare Part D as defined in the Medicare Prescription Drug, Improvement, and |
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62 | 62 | | 2.29Modernization Act of 2003, Public Law 108-173, section 1860D-2(e), for individuals eligible |
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63 | 63 | | 2.30for drug coverage as defined in the Medicare Prescription Drug, Improvement, and |
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64 | 64 | | 2.31Modernization Act of 2003, Public Law 108-173, section 1860D-1(a)(3)(A). For these |
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65 | 65 | | 2.32individuals, medical assistance may cover drugs from the drug classes listed in United States |
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66 | 66 | | 2.33Code, title 42, section 1396r-8(d)(2), subject to this subdivision and subdivisions 13a to |
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67 | 67 | | 2Section 1. |
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68 | 68 | | REVISOR AGW/AC 25-0275502/06/25 3.113g, except that drugs listed in United States Code, title 42, section 1396r-8(d)(2)(E), shall |
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69 | 69 | | 3.2not be covered. |
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70 | 70 | | 3.3 (f) Medical assistance covers drugs acquired through the federal 340B Drug Pricing |
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71 | 71 | | 3.4Program and dispensed by 340B covered entities and ambulatory pharmacies under common |
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72 | 72 | | 3.5ownership of the 340B covered entity. Medical assistance does not cover drugs acquired |
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73 | 73 | | 3.6through the federal 340B Drug Pricing Program and dispensed by 340B contract pharmacies. |
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74 | 74 | | 3.7 (g) Notwithstanding paragraph (a), medical assistance covers self-administered hormonal |
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75 | 75 | | 3.8contraceptives prescribed and dispensed by a licensed pharmacist in accordance with section |
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76 | 76 | | 3.9151.37, subdivision 14; nicotine replacement medications prescribed and dispensed by a |
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77 | 77 | | 3.10licensed pharmacist in accordance with section 151.37, subdivision 15; and opiate antagonists |
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78 | 78 | | 3.11used for the treatment of an acute opiate overdose prescribed and dispensed by a licensed |
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79 | 79 | | 3.12pharmacist in accordance with section 151.37, subdivision 16. |
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80 | 80 | | 3.13 (h) Medical assistance coverage for a prescription contraceptive must provide a 12-month |
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81 | 81 | | 3.14supply for any prescription contraceptive if a 12-month supply is prescribed by the |
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82 | 82 | | 3.15prescribing health care provider. The prescribing health care provider must determine the |
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83 | 83 | | 3.16appropriate duration for which to prescribe the prescription contraceptives, up to 12 months. |
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84 | 84 | | 3.17For purposes of this paragraph, "prescription contraceptive" means any drug or device that |
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85 | 85 | | 3.18requires a prescription and is approved by the Food and Drug Administration to prevent |
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86 | 86 | | 3.19pregnancy. Prescription contraceptive does not include an emergency contraceptive drug |
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87 | 87 | | 3.20approved to prevent pregnancy when administered after sexual contact. For purposes of this |
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88 | 88 | | 3.21paragraph, "health plan" has the meaning provided in section 62Q.01, subdivision 3. |
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89 | 89 | | 3.22 (i) Notwithstanding subdivisions 13d and 13g, medical assistance covers any drug on |
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90 | 90 | | 3.23the formulary of the recipient's primary third-party payer for which the primary third-party |
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91 | 91 | | 3.24payer has made partial payment, regardless of the drug's exclusion from the medical |
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92 | 92 | | 3.25assistance formulary or preferred drug list. Notwithstanding subdivision 13f, medical |
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93 | 93 | | 3.26assistance must cover drugs under this paragraph without requiring prior authorization. |
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94 | 94 | | 3.27Medical assistance must cover drugs under this paragraph regardless of the payment amount |
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95 | 95 | | 3.28initially covered by the primary third-party payer. |
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96 | 96 | | 3.29 Sec. 2. Minnesota Statutes 2024, section 256B.0625, subdivision 25b, is amended to read: |
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97 | 97 | | 3.30 Subd. 25b.Authorization with third-party liability.(a) Except as otherwise allowed |
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98 | 98 | | 3.31under this subdivision or required under federal or state regulations, the commissioner must |
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99 | 99 | | 3.32not consider a request for authorization of a service when the recipient has coverage from |
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100 | 100 | | 3.33a third-party payer unless the provider requesting authorization has made a good faith effort |
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101 | 101 | | 3Sec. 2. |
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102 | 102 | | REVISOR AGW/AC 25-0275502/06/25 4.1to receive payment or authorization from the third-party payer. A good faith effort is |
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103 | 103 | | 4.2established by supplying with the authorization request to the commissioner the following: |
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104 | 104 | | 4.3 (1) a determination of payment for the service from the third-party payer, a determination |
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105 | 105 | | 4.4of authorization for the service from the third-party payer, or a verification of noncoverage |
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106 | 106 | | 4.5of the service by the third-party payer; and |
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107 | 107 | | 4.6 (2) the information or records required by the department to document the reason for |
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108 | 108 | | 4.7the determination or to validate noncoverage from the third-party payer. |
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109 | 109 | | 4.8 (b) A provider requesting authorization for services covered by Medicare is not required |
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110 | 110 | | 4.9to bill Medicare before requesting authorization from the commissioner if the provider has |
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111 | 111 | | 4.10reason to believe that a service covered by Medicare is not eligible for payment. The provider |
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112 | 112 | | 4.11must document that, because of recent claim experiences with Medicare or because of |
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113 | 113 | | 4.12written communication from Medicare, coverage is not available for the service. |
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114 | 114 | | 4.13 (c) Authorization is not required if a third-party payer has made payment that is equal |
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115 | 115 | | 4.14to or greater than 60 percent of the maximum payment amount for the service allowed under |
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116 | 116 | | 4.15medical assistance, except that authorization of drugs covered by a primary third-party payer |
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117 | 117 | | 4.16is not required regardless of payment amount pursuant to subdivision 13, paragraph (i). |
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118 | 118 | | 4.17 Sec. 3. Minnesota Statutes 2024, section 256B.37, subdivision 5, is amended to read: |
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119 | 119 | | 4.18 Subd. 5.Private benefits to be used first.(a) Private accident and health care coverage |
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120 | 120 | | 4.19including Medicare for medical services is primary coverage and must be exhausted before |
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121 | 121 | | 4.20medical assistance or alternative care services are paid for medical services including home |
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122 | 122 | | 4.21health care, personal care assistance services, hospice, supplies and equipment, or services |
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123 | 123 | | 4.22covered under a Centers for Medicare and Medicaid Services waiver. When a person who |
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124 | 124 | | 4.23is otherwise eligible for medical assistance has private accident or health care coverage, |
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125 | 125 | | 4.24including Medicare or a prepaid health plan, the private health care benefits available to the |
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126 | 126 | | 4.25person must be used first and to the fullest extent. |
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127 | 127 | | 4.26 (b) Medical assistance must cover medical services a primary third-party payer deems |
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128 | 128 | | 4.27out-of-network or as requiring referral if the medical services are in-network and do not |
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129 | 129 | | 4.28require a referral under medical assistance. |
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130 | 130 | | 4Sec. 3. |
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131 | 131 | | REVISOR AGW/AC 25-0275502/06/25 |
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