1 | 1 | | 89R6156 SCL-D |
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2 | 2 | | By: Harris H.B. No. 2978 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to the minimum reimbursement amount for prescription drugs |
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10 | 10 | | and devices to health benefit plan network pharmacists and |
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11 | 11 | | pharmacies. |
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12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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13 | 13 | | SECTION 1. Chapter 1369, Insurance Code, is amended by |
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14 | 14 | | adding Subchapter H-1 to read as follows: |
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15 | 15 | | SUBCHAPTER H-1. MINIMUM REIMBURSEMENT AMOUNT FOR NETWORK |
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16 | 16 | | PHARMACISTS AND PHARMACIES |
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17 | 17 | | Sec. 1369.371. DEFINITIONS. In this subchapter: |
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18 | 18 | | (1) "Health benefit plan" has the meaning assigned by |
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19 | 19 | | Section 1369.251. |
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20 | 20 | | (2) "Pharmacy benefit manager" means: |
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21 | 21 | | (A) a pharmacy benefit manager, as defined by |
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22 | 22 | | Section 4151.151; or |
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23 | 23 | | (B) a health benefit plan issuer or sponsor that |
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24 | 24 | | administers pharmacy benefits in connection with the health benefit |
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25 | 25 | | plan. |
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26 | 26 | | Sec. 1369.372. APPLICABILITY OF SUBCHAPTER. This |
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27 | 27 | | subchapter applies to the administration of pharmacy benefits by or |
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28 | 28 | | on behalf of an issuer or sponsor of a health benefit plan. |
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29 | 29 | | Sec. 1369.373. EXCEPTIONS TO APPLICABILITY OF |
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30 | 30 | | SUBCHAPTER. This subchapter does not apply to an issuer or |
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31 | 31 | | provider of health benefits under or a pharmacy benefit manager |
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32 | 32 | | administering pharmacy benefits under: |
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33 | 33 | | (1) the state Medicaid program, including the Medicaid |
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34 | 34 | | managed care program operated under Chapter 540, Government Code; |
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35 | 35 | | (2) the child health plan program under Chapter 62, |
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36 | 36 | | Health and Safety Code; |
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37 | 37 | | (3) the TRICARE military health system; |
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38 | 38 | | (4) a basic coverage plan under Chapter 1551; |
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39 | 39 | | (5) a basic plan under Chapter 1575; |
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40 | 40 | | (6) a coverage plan under Chapter 1579; |
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41 | 41 | | (7) a plan providing basic coverage under Chapter |
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42 | 42 | | 1601; or |
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43 | 43 | | (8) a workers' compensation insurance policy or other |
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44 | 44 | | form of providing medical benefits under Title 5, Labor Code. |
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45 | 45 | | Sec. 1369.374. REIMBURSEMENT MINIMUM; DISPENSING FEES. |
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46 | 46 | | (a) Notwithstanding any other law and subject to Subsection (c), a |
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47 | 47 | | pharmacy benefit manager may not reimburse a pharmacist or pharmacy |
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48 | 48 | | under contract with the pharmacy benefit manager for a prescription |
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49 | 49 | | drug or device an amount that is less than the actual cost to that |
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50 | 50 | | pharmacist or pharmacy for the drug or device. |
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51 | 51 | | (b) Subsection (a) does not apply to a pharmacy benefit |
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52 | 52 | | manager using an ingredient cost reimbursement methodology for a |
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53 | 53 | | prescription drug or device that is identical to the reimbursement |
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54 | 54 | | methodology for the ingredient cost of the drug or device under the |
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55 | 55 | | Medicaid fee-for-service model. |
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56 | 56 | | (c) In calculating the reimbursement amount for a |
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57 | 57 | | prescription drug or device under Subsection (a), a pharmacy |
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58 | 58 | | benefit manager may not include in that calculation the amount of a |
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59 | 59 | | professional dispensing fee payable to the pharmacist or pharmacy |
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60 | 60 | | that dispensed the drug or device. |
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61 | 61 | | (d) A pharmacy benefit manager shall reimburse a pharmacist |
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62 | 62 | | or pharmacy under contract with the pharmacy benefit manager a |
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63 | 63 | | professional dispensing fee for a prescription drug or device in an |
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64 | 64 | | amount that is not less than the amount of the dispensing fee paid |
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65 | 65 | | for the drug or device under the Medicaid fee-for-service model. |
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66 | 66 | | Sec. 1369.375. APPEAL: PROCEDURES REQUIRED. (a) A |
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67 | 67 | | pharmacy benefit manager shall provide in the contract with each |
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68 | 68 | | pharmacist or pharmacy a procedure for the pharmacist or pharmacy |
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69 | 69 | | to appeal a reimbursement of a prescription drug or device that the |
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70 | 70 | | pharmacist or pharmacy alleges to not be in compliance with Section |
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71 | 71 | | 1369.374 on or before the seventh day after the date the |
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72 | 72 | | reimbursement is provided. |
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73 | 73 | | (b) The appeal procedure provision must: |
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74 | 74 | | (1) be approved by the commissioner; and |
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75 | 75 | | (2) permit a pharmacist or pharmacy or the |
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76 | 76 | | pharmacist's or pharmacy's designated agent to file an appeal using |
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77 | 77 | | the standard appeal form described by Subsection (d). |
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78 | 78 | | (c) A pharmacy benefit manager shall file an appeal |
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79 | 79 | | procedure provision with the department in the form and manner |
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80 | 80 | | prescribed by the commissioner. |
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81 | 81 | | (d) The commissioner shall develop and make available to |
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82 | 82 | | pharmacy benefit managers a standard appeal form to be used to file |
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83 | 83 | | an appeal of a reimbursement alleged to not be in compliance with |
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84 | 84 | | Section 1369.374. |
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85 | 85 | | Sec. 1369.376. APPEAL: PHARMACIST OR PHARMACY AGENT. A |
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86 | 86 | | pharmacist or pharmacy electing to appeal a reimbursement under a |
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87 | 87 | | procedure described by Section 1369.375 may designate a pharmacy |
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88 | 88 | | services administrative organization or another agent to file and |
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89 | 89 | | conduct the appeal. |
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90 | 90 | | Sec. 1369.377. APPEAL: EFFECT OF PHARMACIST OR PHARMACY |
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91 | 91 | | PREVAILING. (a) In this section, "similarly situated pharmacist |
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92 | 92 | | or pharmacy" means a pharmacist or pharmacy: |
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93 | 93 | | (1) that is under contract with the pharmacy benefit |
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94 | 94 | | manager; |
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95 | 95 | | (2) that purchases the prescription drug or device |
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96 | 96 | | that is the subject of an appeal of a reimbursement not in |
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97 | 97 | | compliance with Section 1369.374 from the same pharmaceutical |
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98 | 98 | | wholesaler as the pharmacist or pharmacy that prevailed in the |
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99 | 99 | | appeal; and |
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100 | 100 | | (3) to which the pharmacy benefit manager also applies |
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101 | 101 | | the challenged reimbursement rate or actual cost for the |
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102 | 102 | | prescription drug or device. |
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103 | 103 | | (b) If a pharmacist or pharmacy prevails in an appeal of a |
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104 | 104 | | reimbursement alleged to not be in compliance with Section |
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105 | 105 | | 1369.374, the pharmacy benefit manager shall, not later than the |
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106 | 106 | | seventh day after the date the pharmacist or pharmacy prevailed: |
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107 | 107 | | (1) make the necessary change to the challenged |
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108 | 108 | | reimbursement or actual cost; |
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109 | 109 | | (2) if the product involved in the appeal is a |
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110 | 110 | | prescription drug, provide the pharmacist or pharmacy the national |
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111 | 111 | | drug code number for the drug; |
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112 | 112 | | (3) permit the pharmacist or pharmacy to reverse and |
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113 | 113 | | rebill the claim that is the subject of the appeal; |
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114 | 114 | | (4) pay or waive any transaction fee required to |
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115 | 115 | | reverse or rebill the claim; |
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116 | 116 | | (5) reimburse the pharmacist or pharmacy at least the |
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117 | 117 | | pharmacist's or pharmacy's actual cost for the prescription drug or |
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118 | 118 | | device; and |
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119 | 119 | | (6) apply the findings from the appeal to the |
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120 | 120 | | reimbursement rate and actual cost for the prescription drug or |
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121 | 121 | | device that is the subject of the appeal to other similarly situated |
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122 | 122 | | pharmacists and pharmacies. |
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123 | 123 | | Sec. 1369.378. APPEAL: EFFECT OF PHARMACY BENEFIT MANAGER |
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124 | 124 | | PREVAILING. (a) If a pharmacy benefit manager prevails in an |
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125 | 125 | | appeal of a reimbursement alleged to not be in compliance with |
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126 | 126 | | Section 1369.374 and the prescription drug or device that is the |
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127 | 127 | | subject of the appeal is available at a cost equal to or less than |
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128 | 128 | | the challenged reimbursement, the pharmacy benefit manager shall, |
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129 | 129 | | not later than the seventh day after the date the pharmacy benefit |
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130 | 130 | | manager prevails: |
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131 | 131 | | (1) provide the pharmacist or pharmacy with the name |
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132 | 132 | | of the national or regional pharmaceutical wholesaler operating in |
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133 | 133 | | this state that has the drug or device in stock at a price that is |
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134 | 134 | | equal to or less than the challenged reimbursement; and |
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135 | 135 | | (2) as applicable, provide the national drug code |
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136 | 136 | | number for the drug or the unique device identifier for the device. |
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137 | 137 | | (b) If a pharmacy benefit manager fails to comply with |
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138 | 138 | | Subsection (a), the pharmacy benefit manager shall: |
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139 | 139 | | (1) adjust the challenged reimbursement to an amount |
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140 | 140 | | equal to or greater than the pharmacist's or pharmacy's actual cost; |
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141 | 141 | | (2) permit the pharmacist or pharmacy to reverse and |
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142 | 142 | | rebill each claim affected by the inability to obtain the drug or |
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143 | 143 | | device at a cost equal to or less than the challenged reimbursement; |
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144 | 144 | | and |
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145 | 145 | | (3) pay or waive any transaction fee required to |
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146 | 146 | | reverse and rebill each affected claim. |
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147 | 147 | | SECTION 2. Subchapter H-1, Chapter 1369, Insurance Code, as |
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148 | 148 | | added by this Act, applies only to a health benefit plan delivered, |
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149 | 149 | | issued for delivery, or renewed on or after January 1, 2026. |
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150 | 150 | | SECTION 3. This Act takes effect September 1, 2025. |
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