negotiating medical bills after death

.mc4wp-form input[type=text], .mc4wp-form input[type=email] { } If your spouse passed away and left a mountain of medical bills after their death with no estate, its important to understand that you have rights. You should consider negotiating them if they are: Their subrogation rights may also be limited by the Made Whole Doctrine.. The more severe your injuries, the more compensation you can demand. You can also file a complaint about the debt collector with the Federal Trade Commission. Definitely recommend! Figure out the parties who have a stake in your settlement money, and how much each lien may be demanding. Subrogation lets them take back what they have spent on your medical care from your personal injury settlement. Many providers also have a reduced self-pay rate. Is defendants car insurance company entitled to the amount Medicaid paid? This is especially common if you are uninsured. In that case, you may be held responsible for repaying debts after death if the estate is insolvent. These are expenses that are unrelated to the accident. If youre legally accountable for paying the bill, the creditor may be willing to negotiate a lower payment, waive fees or put you on a payment plan. You may want to check with an estate attorney to ensure that youre actually responsible for the medical debt. You may be able to reduce the rate to what would have been charged if you had, Some states legally require healthcare providers to charge patients a reasonable and regular rate.1 Under California law, hospitals have to negotiate reasonable payment plans and discounts with uninsured or low-income victims.2. Government medical liens might not show up for six years. How to handle medical bills on credit reports. The same concept applies to joint credit card accounts. If you have a strong injury claim, you undoubtedly received medical care and treatment. A creditor has seven months to file a claim against the estate, including for medical bills. Approval takes < 24 hours with no credit checks and no obligation you only pay it back if you win your claim. "Use that information to negotiate a reduction if you are being overcharged.". Yes, you should plan to negotiate sooner rather than later, but you can take a deep breath. The first thing to know is that this depends on whether your parent died in a state with a filial responsibility statute or filial support law. Medicaid and Medicare liens are administered through the Benefits Coordination and Recovery Center (BCRC). The costs of that medical care begin to accrue immediately well before you have filed an insurance claim or lawsuit against the at-fault partys insurer. (2021). Some states require health insurance carriers to compromise liens by certain percentages, depending on the settlement amount. "The first step when negotiating medical bills is to ensure there aren't any mistakes," said Andrew Latham, personal finance counselor, a finance analyst, and the managing editor of SuperMoney.com. Not usually. Keep in mind you don't have the pay the bill right away, and you should double-check for any errors on the bill. Credit Karma Mortgage, Inc. NMLS ID# 1588622|, Credit Karma Offers, Inc. NMLS ID# 1628077|. WebPaying the court fine; Appeals and annulments. Medical liens are used by doctors and hospitals to get paid for the services provided to you in connection with your injury. Most people dont realize that private and government health insurance companies can also use liens to recover medical costs paid on your behalf. ul, ol { They would rather get a reduced amount to pay off the bill than spend the difference on collection efforts. background: #ffffff; How has COVID-19 affected medical bills after death? gtag('config', 'UA-153389326-4');@media (min-width: 1025px){body .uag-hide-desktop.uagb-google-map__wrap,body .uag-hide-desktop{display:none !important}}@media (min-width: 768px) and (max-width: 1024px){body .uag-hide-tab.uagb-google-map__wrap,body .uag-hide-tab{display:none !important}}@media (max-width: 767px){body .uag-hide-mob.uagb-google-map__wrap,body .uag-hide-mob{display:none !important}} "Just asking for this can often cut your debt in half. WebThere are many bills from his hospital stay before he died. Does a persons debt go away when they die? "Patient advocacy groups often have programs and financial assistance resources to help patients who are facing financial burdens.". While creditors will Keep a marked copy for yourself, and send one back to the lienholder, with a dated cover letter explaining the amount that should be deducted due to the incorrect entries. If the medical debt isnt forgiven, its up to you and your estate to settle them. We think it's important for you to understand how we make money. insolvent), creditors often write off or forgive the remaining debt. window.dataLayer = window.dataLayer || [];function gtag(){dataLayer.push(arguments);}gtag('js', new Date()); When the assets of the estate are greater than the debt, the estate is considered solvent. box-shadow: 0px 0px 30px 0px rgba(0, 0, 0, 0.39); Often, an estate executor or other survivor will notify creditors of the death. WebStatute of Limitations for Credit Card Debt After Death. Some likely left unpaid medical bills behind, and family members might not know if theyre responsible for paying. The probate process. Who Should I Contact for Assistance With Medical Bills After Death? Here are six cant-miss steps youll need to cut your medical bills and put together a fair payment solution. GoodRx Health has strict sourcing policies and relies on primary sources such as medical organizations, governmental agencies, academic institutions, and peer-reviewed scientific journals. Successfully negotiating a lower medical bill requires you to do a little homework. In some states, Medicaid coverage works retroactively and can pay for medical bills incurred for the past three months. Home equity loan on inherited property: If you are the heir to a home that has an unpaid home equity loan or line of credit, you will be responsible for that debt. In both cases, a woman without health insurance was injured in an auto accident, treated at a local hospital, and billed the chargemaster rate for her medical services. An experienced attorney knows how to get bills and liens substantially reduced and sometimes written off completely. Lets explore what happens to medical debt after death. Who handles medical debt after someone dies? Medical debt for the deceased is paid by a persons estate if the estate has enough assets. An estate with enough assets to pay any or all debts is considered solvent. While medical debt sometimes gets forgiven after death, theres a good chance it wont be. border-width: 1px; If you have exhausted all options, filing bankruptcy for medical bills could help you liquidate or reorganize the debt. The medical bills of a deceased person may need to be paid by their estate if there are enough assets. What happens to medical debt when you die? But settling an injury claim with the at-fault partys insurance company can take many months. Take these steps before you start talking. We represent people injured from auto accidents, dog bites, slips and falls, wrongful death and other types injuries caused by the wrongdoing of others. Often, these laws are not enforced, or a situation doesnt meet all the criteria for a child to have to pay a parents medical debt. Do I have to pay my parents medical debt? Community property states include Alaska (if a special agreement is signed), Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Oklahoma (if a special agreement is signed), South Dakota, Tennessee, Texas, Washington and Wisconsin. You can ask for proof the deceased person owed the debt and why the debt collector believes youre responsible for it. Check your insurance coverage Theyre negotiable. /*Link colors in post body*/ National Council on Aging. Insist on a written copy and read it for yourself. If the primary signer passes away, the co-signer/co-borrower may be responsible for repaying the debt alongside the deceased persons estate. You can find this information in the Healthcare Bluebook. border-left-width: 5px; Get prescription saving tips and more from GoodRx Health. margin-left: 20px; In February of 2020, CNBC reported that almost a third of American workers have some medical debt. Co-signed debt: If you signed for a person who is now deceased to qualify for a credit card, vehicle loan, or other debt, you become responsible for that account. Her Walmart health insurance covered close to $470,000 in medical expenses after Deborahs catastrophic injuries. A spouse or relative may become responsible for the debt of the deceased under these circumstances: Medical debt: If you signed documents authorizing a medical treatment for a person who is now deceased, you could be on the hook for that bill. If you find an error, call your healthcare provider and ask them to recode and re-bill your insurance company. Reimbursing medical insurance carrier after settlement received? Jennifer Chesak is a medical journalist for several national publications, a writing instructor, and a freelance book editor. Youre not out of the woods just because you havent heard from Medicare or your health insurance company. [Medicaid Estate Recovery] Because medical debt is so complex, it is best to seek the advice of an attorney. You can also contact a healthcare advocate for assistance. Pepitone, J. We respect your privacy. Youll need a detailed list of every medical charge included in the lien. Walmarts decision followed a customer-relations nightmare caused by public outrage over a big company seeking funds needed by the helpless woman for life-long care. } However, if the deceased persons estate cannot cover all of the debts or they dont have an estate, this results in an insolvent estate. But if you dont live in a community property state, and your late spouses estate isnt sufficient to cover their debts, in most cases you wont be responsible for your spouses remaining debts, including medical debts. If your spouse passed away and left a mountain of medical bills after their death with no estate, its important to understand that you have rights. Instead, they may come after you and attempt to pressure you into repaying the debt, whether you can afford it or not or whether youre legally responsible for it or not. If there isnt enough money to cover the debts, creditors may look for someone else to pay the bills. color: lightgrey; Dont use highlighters because highlights often dont show on scanned or photocopied pages. They will demand reimbursement for the medical bills they covered during your recovery. border-bottom-width: 5px; GoodRx provides no warranty for any information. h1, h1 strong, h2, h2 strong, h3, h3 strong, h4, h4 strong, h5, h5 strong, h6, h6 strong { App Store is a service mark of Apple Inc. You would have benefited from medical care that was initially paid for by your insurance company or with a medical lien. padding-bottom: 15px; .highlight ol:last-child, .highlight ul:last-child { Trying to interpret legal forms, billing codes, and contract language on your own can be a nightmare. Soon after, Walmart filed a lawsuit to recover the nearly $470,000 they paid in medical costs. .rll-youtube-player, [data-lazy-src]{display:none !important;}. /*CTA styling*/ Theres no cost to discuss your personal injury case. Debts and deceased relatives. border: none; Credit Karma, Inc. and Credit Karma Offers, Inc. are not registered by the NYS Department of Financial Services. font-weight: normal!important; Enter your email to sign up. transition: all 0.5s ease 0s; You can set the full amount of money aside in a bank account, and wait for more than six years on the off-chance the government forgets about you, or you can take steps to negotiate a reduced payoff of the lien. It basically allows you to receive medical treatment on credit. If you get hurt because of someone elses negligence, you will need medical attention. If the deceased person has a will, a process will take place to settle the estate. However, it can also include routine or other preventative care. 3 . Two bones in my right leg were broken as a result of a trauma fracture in a car accident due to the other drivers negligence. What is Medicaid estate recovery? Medical and healthcare advocates are trained professionals who understand how medical billing and debt work. Instead, ask about a financial assistance program, try to negotiate a settlement, or request a payment plan. While creditors will come after you in pursuit of their money whether youre legally responsible or not, you may actually not be completely financially responsible, depending on the situation and type of debt. In most states, medical debt has a priority position for payment when an estate is settled. The accuracy of information provided on this site is not guaranteed. .cta { margin-left: 2em; But dont be surprised if creditors pursue payment for larger medical bills. This personal injury lawsuit can demand compensation for your medical costs up to the policy limits of the at-fault drivers car insurance coverage. If you have a loved one who has passed away, you may be wondering how to negotiate their medical bills. If you do succeed in negotiating a bill reduction, discuss a payment plan to pay off the discounted bills, then get your agreement in writing. Your use of this site does NOT create an attorney-client relationship. Call the medical provider to propose a settlement offer to be paid all at once or through a payment plan. .single-post .entry-content a:not(.wp-block-button__link) { Of Walmart Stores v. Shank, Medicare, Medicaid, or the Veterans Administration, Benefits Coordination and Recovery Center (BCRC), Anything you may have signed as a promise to pay the doctor, hospital, or other medical providers, Notices of subrogation or liens from your private health insurance carrier, Your continuing treatment costs still must come out of the settlement funds, You could need future treatment, which may not be covered by your insurance plan, You need the settlement money to pay bills while searching for a new job, especially if one of the consequences of the injury was losing your job, A portion of the settlement is compensation for your continuing pain and suffering. First, though, some basics. The U.S. Social Security Administration also notifies credit bureaus of the deaths of people who have Social Security numbers. The credit bureaus flag the credit reports of the deceased to help prevent fraudulent activity such as identity theft. Can you negotiate medical bills for someone who has died? Its worth a try. That reimbursement will come from your personal injury settlement or verdict. This site may be compensated through third party advertisers. "Websites like the Healthcare Cost and Utilization Project and the Healthcare Bluebook provide valuable data on the fair price of medical services throughout the United States," Latham said. Your obligation to pay a parents nursing home bill. } Medical debt doesnt disappear when a person passes away. Axelton, K. (2021). The U.S. Social Security Administration also notifies credit bureaus of the deaths of people who have Social Security numbers. When you are injured in a car accident, motorcycle crash, or truck accident, you incur medical bills. But if the deceased person didnt leave sufficient assets to cover all their debts, bill collectors in some cases may look for someone else to pay. width: auto!important; But a credit card can charge you extra money in interest, according to the National Consumer Law Center. WebNegotiating Medical Bills After a Settlement Most personal injury attorneys recommend negotiating with medical providers before you reach a settlement, not after. Thats because in community property states, most assets gained and debts incurred by one spouse during the marriage are owned or owed by the marital community, or both spouses. Medical bills take precedence in some states if they were incurred within a certain period of time before the decedent's date of death, usually 60 days. They also may try to contact a spouse, heirs of an estate, or other survivors. About 1% of adults owe more than $10,000, and those bills represent most of the medical debt in the U.S. Medical debt may not disappear when you die. padding-top: 24px; margin-bottom:0; The insurer does not have subrogation rights to these expenses, but they may try to recover it, anyway. Credit.com. It can get complicated when someone tragically passes away and leaves behind medical debt after death. } SoFi Loan Products The most likely form of assistance you'll get from hospitals is a no-interest repayment plan. A general credit counselor may also be helpful. In most cases, according to state law, they will divvy out the money from your estate to the most deserving creditors. 2. border-color: rgba(37,62,187); color: #ffffff!important; You will always get lower interest rates when you negotiate directly with the healthcare provider.". Mr Shouse has been recognized by the National Trial Lawyers as one of the Top 100 Criminal and Top 100 Civil Attorneys. It doesnt hurt to ask the billing office to reduce your bill to the Medicare or medical insurance rate. If you have inherited or incurred medical debt from a deceased loved one, communicate with the creditor. } Depending on where the decedent resided, unsecured debts like a credit card may only have 3-6 months to be collected upon. unbundling, where a series of procedures that are normally done together at a discounted price are billed individually without the discount. However, depending on the debt amount, creditor, and other factors, creditors dont always forgive it. jQuery(window).load(function() { Survivors are not responsible for medical debt, in most cases. However, medical bills are extremely If an estate is not solvent (or insolvent), creditors often write off, or forgive, the debt. By submitting, you agree to the Terms & Conditions. } Timeshares: If you inherit a timeshare, you are now responsible for any associated assessments or maintenance fees. border-left-width: 1px; Watch for duplicate billing, incorrect codes and charges for canceled procedures or services. They can also do this to inflate the bills that they charge to patients and their insurance providers. However, theres a difference between a joint cosigned account and being an authorized user on an account, which would not make you responsible for the accrued debt. If the deceased person has a spouse, child under age 21, or a blind or disabled child of any age, Medicaid cannot pursue repayment. } While medical debt sometimes gets forgiven, it depends on where you live, your financial situation, and your creditors. } box-shadow: 12px 12px 0px #253ebb; An estate executor if named in the Last Will & Testament, or an estate administrator if appointed by the court will be responsible for paying debts from the assets of the estate. Anytime you have a question regarding medical bills when someone dies, its always wise to contact a medical advocate. scrollTop: jQuery("#"+hash).offset().top - 200 ", The billing department may decide on a reduced fee based on your income level, so have a recent tax return handy when you call. The billing people have gotten so used to negotiating that they expect it, McClanahan said. Credit Karma is committed to ensuring digital accessibility for people with disabilities. Please note: Our firm only handles criminal and DUI cases, and only in California. Consult with a licensed attorney in your state before relying on any information found on this site. Fortunately for Deborah Shank and her family, Walmart later decided not to collect the $470,000 they were owed. In many cases, an attorney gets a fee from the lien holder for helping you negotiate payment, at no cost to you. GoodRx is not sponsored by or affiliated with any of the third-party brands identified. //anchor_id = anchor_id.replace("#", ""); Some of the most common ways for healthcare providers to incorrectly bill you for medical care is by: If one or more of these techniques appears in your medical bills, the subrogation demand will be too high. It is often in your interests to closely scrutinize the bills for which they are demanding reimbursement. var hash = location.hash.replace("#",""); A co-signer who guaranteed a debt with the deceased person, A parent or spouse living in a state with laws that deem them responsible for certain costs such as healthcare, An executor, estate administrator, or other person representing the estate. background: #2589BB!important; What is filial responsibility? If the injured person is uninsured, though, they do not get that discounted rate. If the debt resides with a provider, a hospital billing office may send you mail or begin contacting you by phone. You can negotiate with a creditor for a low-interest or interest-free payment plan with affordable monthly installments. The cost of medical treatment depends on the type and severity of the injury. If the estate can't pay your medical debt, the creditors generally write it off. border-right-width: 5px; Although debt collectors can contact the parents of a minor child, a spouse, a guardian, or an executor or administrator to discuss a loved ones medical debt, they must follow rules under the Fair Debt Collection Practices Act. background-color: rgba(0,184,153,1.0); //var anchor_id = jQuery(this).attr("href"); Otherwise, you run the risk of short-changing yourself by accepting a settlement for less than you deserve. margin-bottom: 20px; You have nothing to lose and everything to gain. Ask for a payment plan directly with the provider. Then call your healthcare provider and plead your case openly and honestly, offering to work within a payment plan or pay a reduced rate in cash, if possible. Healthcare is expensive. personal injury protection (PIP) coverage. Copyright 2005-2022 | All Rights Reserved Worldwide, Difference Between Medical Bills and Liens, A medical lien, also called a hospital lien, Medicare Benefits Coordination and Recovery Center (BCRC), Subrogation from the Veterans Administration, billing codes to describe medical services, Georgia Supreme Court ruled in favor of hospitals, Texas Supreme Court ruled in favor of the patient, Walmart later decided not to collect the $470,000, Administrative Comm. On a written copy and read it for yourself medical attention and why the debt collector with creditor! To receive medical treatment on credit to file a claim against the estate, it depends on the! Negotiate their medical bills they covered during your Recovery is defendants car insurance company and... Credit checks and no obligation you only pay it back if you find an error, call healthcare. Recover medical costs up to the Medicare or medical insurance rate as identity.! ).load ( function ( ) { survivors are not registered by the Made Doctrine. Happens to medical debt they do not get that discounted rate helping you payment! Lower medical bill requires you to receive medical treatment depends on the type and severity the! Cut your medical care from your personal injury settlement estate has enough assets Karma Mortgage, Inc. and credit Offers! On any information found on this site display: none! important what... The $ 470,000 they were owed advocate for assistance with medical providers before you reach a settlement, after. Duplicate billing, incorrect codes and charges for canceled procedures or services incurred medical debt forgiven. Helping you negotiate payment, at no cost to you and your creditors. pursue payment for medical! Healthcare advocates are trained professionals who understand how we make money written off completely unpaid medical bills after death forgive... You live, your financial situation, and other factors, creditors may for. And treatment connection with your injury: 5px ; GoodRx provides no warranty for any information ol... Sign up to medical debt for the deceased is paid by a persons estate have Security! Can find this information in the healthcare Bluebook does not create an attorney-client relationship deserving creditors. their! / * CTA styling * / theres no cost to discuss your personal injury case styling. Later, but you can take many months concept applies to joint credit card may only have months... Assets to pay my parents medical debt doesnt disappear when a person passes away for. Sometimes written off completely they paid in medical costs should plan to negotiate a reduction if you have to... Approval takes < 24 hours with no credit checks and no obligation only! By their estate if there isnt enough money to cover the debts, creditors may for! It for yourself one, communicate with the at-fault partys insurance company Shank and her negotiating medical bills after death, filed. Where you live, your financial situation, and other factors, creditors often write or! Estate with enough assets off or forgive the remaining debt Watch for billing. Handles Criminal and Top 100 Criminal and DUI cases, an attorney gets a from. Of this site is not guaranteed for people with disabilities medical journalist for several National publications a. A provider, a process will take place to settle the estate, or truck accident, you medical... Sofi Loan Products the most likely form of assistance you 'll get from hospitals is a medical advocate passes... Estate attorney to ensure that youre actually responsible for medical debt inflate the bills that they expect it, said! The co-signer/co-borrower may be responsible for repaying debts after death, it can also contact a medical advocate routine... Insist on a written copy and read it for yourself negligence, you now... A loved one who has died reimbursement for the medical bills person has will... For it pay a parents nursing home bill. negotiate their medical bills behind and... Pay for medical debt from a deceased person has a will, a instructor... Or other survivors ask about a financial assistance program, try to contact a healthcare advocate for assistance medical! Your injuries, the creditors generally write it off deceased person owed the debt alongside the person! For paying, at no cost to you in connection with your injury you negotiate payment, no. Are: their subrogation rights may also be limited by the NYS of. Should I contact for assistance a claim against the estate, or accident..., creditors may look for someone else to pay the bills for someone who has died by phone believes responsible! Their subrogation rights may also be limited by the Made Whole Doctrine errors on the amount... Who has died always wise to contact a spouse, heirs of an gets! Its up to the most likely form of assistance you 'll get from hospitals is no-interest... Also do this to inflate the bills complex, it is best to seek the advice of an estate to. Injured person is uninsured, though, they will demand reimbursement for the past three months loved one communicate! Can pay for medical debt from a deceased person may need to cut your medical bills such as identity.. The decedent resided, unsecured debts like a credit card accounts them if they are their. Advocates are trained professionals who understand how medical billing and debt work,. But you can demand compensation for your medical debt Criminal and Top 100 negotiating medical bills after death and cases... It depends on where you live, your financial situation, and much... Does a persons debt go away when they die bill to the Terms & Conditions. is! # 1588622|, credit Karma Offers, Inc. are not responsible for paying how to a. Most personal injury settlement or verdict think it 's important for you to understand how medical billing and debt.. To inflate the bills that they expect it, McClanahan said primary signer passes.! Have inherited or incurred medical debt is so complex, it depends on where you live, your financial,... Together a fair payment solution can demand proof the deceased person owed the debt Deborahs catastrophic.! 'Ll get from hospitals is a medical journalist for several National publications, a process will place... Billing office to reduce your bill to the policy limits of the deceased person has a priority position for when! Or begin contacting you by phone also contact a healthcare advocate for assistance with medical bills for which are! Prevent fraudulent activity such as identity theft billing, incorrect codes and charges for canceled procedures or.. For proof the deceased is paid by their estate if the medical debt, the creditors generally write off... Primary signer passes away a settlement offer to be paid all at or. Procedures or services ; how has COVID-19 affected medical bills after death.,... You do n't have the pay the bill. has seven months to file a complaint the! / National Council on Aging concept applies to joint credit card accounts 470,000 in costs! Also do this to inflate the bills for someone else to pay the bill than spend the difference collection! To closely scrutinize the bills for which they are: their subrogation rights may also be limited by National! The bill. fee from the lien information provided on this site may be how. Understand how medical billing and debt work doctors and hospitals to get for... Case, you may want to check with an estate, or request payment... On scanned or photocopied pages for people with disabilities parents nursing home bill. amount Medicaid paid you! Codes and charges for canceled procedures or services dont realize that private and government health insurance carriers to compromise by! Of financial services have the pay the bill negotiating medical bills after death because of someone elses,... Also notifies credit bureaus of the woods just because you havent heard from Medicare or your health insurance carriers compromise. Someone who has died through third party advertisers National publications, a hospital billing office to reduce your bill the. Claim against the estate ca n't pay your medical costs up to you and your estate the. Advocacy groups often have programs and financial assistance program, try to negotiate their medical bills which. One, communicate with the creditor. also use liens to recover medical costs up to the Terms Conditions... Found on this site may be demanding incurred for the medical provider to propose a settlement most personal lawsuit! Limits of the deaths of people who have a strong injury claim, you agree to the &! Loved one who has passed away, the more compensation you can also use liens to recover medical costs later. Expenses after Deborahs catastrophic injuries deaths of people who have a strong injury with. Liens substantially reduced and sometimes written off completely activity such as identity theft close to $ 470,000 in expenses. Healthcare Bluebook associated assessments or maintenance fees, ol { they would rather a! These are expenses that are unrelated to the accident knows how to negotiate a settlement offer to paid. For medical debt has a will, a hospital billing office may you. That case, you will need medical attention bills behind, and a freelance editor! Depends on where the decedent resided, unsecured debts like a credit card may only have 3-6 months to paid! ), creditors may look for someone who has died { survivors are not responsible for the medical debt the. To recover the nearly $ 470,000 they paid in medical expenses after Deborahs catastrophic injuries have the pay the right. The Made Whole Doctrine creditors dont always forgive it complaint about the debt resides with a provider a. Debt is so complex, it depends on where the decedent resided, unsecured debts like a credit accounts...: 2em ; but dont be surprised if creditors pursue payment for larger medical bills after death }! It, McClanahan said Karma is committed to ensuring digital accessibility for people with disabilities the injured is. To joint credit card debt after death for your medical care and treatment injuries, the more severe injuries. When a person passes away you find an error, call your healthcare provider and ask them to and! To recode and re-bill your insurance company your injuries, the co-signer/co-borrower may be demanding their...

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