Why Progressives aren't blocking the bill: Medicaid

by: Chris Bowers

Thu Dec 10, 2009 at 16:56


The largest public option in the health care bills is, and has always been, the significant expansion of Medicaid.  In terms of the number of people it covers, this expansion dwarfs any other public option expansion currently on the table in Congress.  In terms of the type of people it covers, the Medicaid expansion includes a much higher percentage of Americans who are uninsured, and a much higher percentage of Americans who are in poverty, than any other public option expansion on the table in Congress.

The CBO report on the bill passed by the House (PDF, page 11), and the CBO report on the bill that was sent to the floor of the Senate (PDF, page 20), both project that the bills will add 15 million more Medicaid subscribers than current law.  All of those 15 million are at 150% of the national poverty level or lower in the House bill, and 133% or lower in the Senate bill.  Also, virtually all of the new people who will be covered by Medicaid in both bills are uninsured.

By comparison, the Medicare +5% public option was projected to cover 10 million people, the negotiated rates public option that passed the House was projected to cover 6 million people, and the opt-out public option was projected to cover 3-4 million people.  Even in the July version of the House bill, the Medicaid expansions were projected to cover 11 million new people (PDF, page 17), larger than any of the other public option expansions reviewed by the CBO.  As such, at all times, the Medicaid expansion was the largest expansion to public health insurance in the various bills that passed through Congressional committees.

Providing 15 million low-income, uninsured Americans with public health insurance is also why so few House Progressives carried through on their earlier threat to sink any health care bill without a new public option program tied to Medicare rates.  After all, House Progressives both want to help people in poverty, and they disproportionately represent districts that would have been impacted by the new Medicaid coverage.   It would have been difficult for House Progressives to explain to their constituents why they denied them health care, especially when the only electoral pressure most Progressives face comes from primary challenges.

There is another reason any Progressive explanation for defeating the bill would have been difficult.  In their July 30th letter, House Progressives were advocating for a Medicare +5% public option, which would have covered 10 million people, to be added to a bill with a Medicaid expansion that, at the time, covered 11 million people.  Such a bill would have increased the number of people with public health insurance by the exact same amount as the bill that eventually passed the House (15 million through the Medicaid expansion and 6 million through the negotiated rate public option in the exchange).  In both pieces of legislation, 21 million more people are covered with public health insurance.

Defeating the vast Medicaid expansion is the pill House and Senate Progressives have been unable to swallow.  If you want to know why Progressives in the House and Senate are not blocking the bill, Medicaid expansion is the reason.

In their quest to get votes, the Democratic leadership seems to have accurately calculated that a Medicaid expansion would lock in Progressives throughout the process.  It would have been nice if they could have figured out something palatable that would have locked in all the Blue Dogs and Conservadems from the start, too.

Chris Bowers :: Why Progressives aren't blocking the bill: Medicaid

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One issue (0.00 / 0)
Medicaid isn't really a public plan in many cases, and it creates a significant state burden. In many states, administering Medicaid has been farmed out, and it isn't really the model along Medicare Part A that most progressives would prefer. I'm not saying Medicaid is a bad thing, but it's not really the model around the public option that people were pushing.

Phase II Of The Sell-Out Complete! On To Phase III! (4.00 / 1)
Phase II -- abandoning the public option is now complete with Nancy Pelosi officially giving it up today.

Now the carrot is the "medicare buy-in".

But, of course both Lieberman and Snow oppose it! So, there goes THAT path to health care reform.

It's time for Reid to just abandon these futile negotiations and pass whatever he can -- medicare buy in, public option tied to medicare, whatever he has 51 votes for -- via reconciliation.

Snowe: Medicare buy-in loses her vote

Sen. Olympia Snowe (R-Maine) said Thursday that she does not support the Medicare buy-in because it would "aggravate an already-serious problem" with the program - the low reimbursement rates for hospitals and doctors.

Snowe said she could not see a way for Senate Democratic leaders to even tweak the proposal to win her vote.

"I can't see it," said Snowe, who met Wednesday with President Barack Obama. "I am talking to a lot of my providers this afternoon and I know they are mighty unhappy."

Another key undecided moderate, Sen. Joe Lieberman (I-Vt.), said Thursday that his level of unease with the Medicare buy in is also rising.

"I am increasingly troubled about the proposal," Lieberman said. "I am worried about what impact it will have on the Medicare program's fiscal viability and also what effect it will have on the premiums paid by people benefiting from Medicare now and whether the whole thing is viable. If you separate it from Medicare, it will be an extremely expensive program."

This was inevitable. While burying the public option gets them past Lincoln, Conrad and Landrieu, it does NOTHING to get Liberman on board.

He's just going to smirk and shoot down EVERY proposal they make. I doubt there's any kind of bill Lieberman would actually support. And Snowe just stiffed Obama once again after he went out to beg her for her vote.

There is JUST NO WAY to get to 60 votes on anything.  


[ Parent ]
If there is no way to get 60 votes (4.00 / 1)
There is JUST NO WAY to get to 60 votes on anything.

If there is no way to get 60 votes, then, don't worry, the bill will go down.

Given the tone of your comment, that seems to be what you want anyway. As such, perhaps you should be egging Lieberman on.

If I am misreading you, and you don't want to defeat the current version of the bill, then I apologize in advance.


[ Parent ]
Imho you're misinterpreting Cugel, Chris. (0.00 / 0)
As I read it, he correctly points out that it's impossible to get Lieberman and the other obstructionists behind anything that would be acceptable for progressives. And I have to say, after seeing yet another "compromise" emerge every other week, only for it to fail to muster 60 votes, even well meaning progressives have to accept that this is the ugly reality. This whole approach of trying to get the party of Joe on board is obviously misguided and totally useless. Just a huge waste of time and efforts.

So, Reid has to finally realize, or to be pushed into accpting, that the only way to get meaningful reform done is to get rid of the 60 vote barrier, either through reconciliation, or by nuking the filibuster. This has to become the centerpiece of the strategy now, and the efforts should focus on the best possible reform supported by 51 votes. Because by waiting for something that is acceptable for all 60 Senators the rest of the term of the 111th Congress isn't enough time for that miracle to happen!


[ Parent ]
Well (0.00 / 0)
since Reconciliation may tear the whole thing apart, the only option would be nuking the filibuster, which liberals don't even want to do, so.

Personally I've always been in favor of getting rid of the filibuster


[ Parent ]
there's the rub (0.00 / 0)
poor people who are disproportionately people of color
vs.
working class (not working poor)

i see that disconnect here at OL everyday. by a common OL definition i am not a progressive because i put the needs of the underclass above the needs of the working class...just me.

but there has got to be a way to advocate for both populations at once...i just don't think the current batch of progressive activists have found it yet.



Have you seen the demographics of this Website? (4.00 / 1)
Quantcast says this site reaches 31572 monthly with a household income between 60K-100K yearly.  Mostly college educated.


Conservative.(former Money Man)....Bothers you, huh? Gore at Poetry Circle.


[ Parent ]
That explains a lot (0.00 / 0)
of the assumptions I see about what is or is not a good bill.  

[ Parent ]
Huh? Why did you change your name, Money Man? (0.00 / 0)
And what's a "mantoo"???

[ Parent ]
are you suggesting that people with money (0.00 / 0)
are unable to advocate for people without? or that people are seeking their own best interests? or maybe both?


[ Parent ]
I don't agree (0.00 / 0)
I don't really see how open left is about representing the working class or any other group of people.  

It tends to represent the concerns of upper middle class white male democrats from the north east, but that is mostly because those are the people in charge at open left.  I wouldn't claim that it is representative of the working class.

And fundamentally bloggers aren't going to be happy because 200 days of "I am happy with the current bill" would draw no readers.

http://transgendermom.blogspot....


[ Parent ]
call it a middle class bias (0.00 / 0)
there is a disconnect around here with the urban poor...but the mostly urban and working poor are the constituents of the house and senate progressives.


[ Parent ]
"Disconnect"? With the urban poor? Imho not. (0.00 / 0)
There may be some kind of a disonnect with blue collar workers, which certainly are totally underrepresented here (as at almost all other liberal blogs, btw). But from comments you can see that many here still remember the days when they belonged to the "urban poor", too. And some here who are from the middle class have been hit by economic hardship recently. No, really, I don't think this criticism is fair.

[ Parent ]
Locking in Blue Dogs (4.00 / 2)
Handcuffs and a baseball bat is a little extreme but fairly satisfying way to have locked them in. ;-)

Let's not channel Ann coulter here :) (n/t) (0.00 / 0)


[ Parent ]
Sorry... (0.00 / 0)
I know... but really I'm almost to the point of praying for Joe to suffer a deadly heart attack.    That worthless ass is dragging his feet... again.    Really, I wish someone had the balls to play hardball with him.

[ Parent ]
The only winning move is not to play. :D (0.00 / 0)
Kick him out of the team. Dems can win with 51 players instead of 60. In fact, that's the only way to win, because with the spoilsports sabotaging every tactical move of the team, there's no chance for victory. They have to be fired asap!

[ Parent ]
I'm ready to get behind this. (4.00 / 1)
I'm ready to get behind this.  I'm not necessarily pleased with either the tactics or the strategy, but I don't imagine dragging this out will improve anything (likely the opposite, in fact).  

So VOTE.  VOTE NOW!  Before more backroom dealing is done.

They drowned the PHIO in the bathtub.  VOTE NOW before they scuttle this too.

There's only one more radio talkshow day this week.  Talk up dropping the public option.  Let it be known that we tried, but the roadblocks were insurmountable.  Give them their victory and the window in which to celebrate it and don't let them move onto gutting what's left.

VOTE! NOW!


No point! (4.00 / 2)
They don't have 60 votes for it with Lieberscum blocking the way. Lieberman loves stiffing the dirty f'ing hippies who thwarted him in the primary. He's only in the caucus in order to give the shaft to anything that Democrats want.

And Obama just spent the afternoon trying to find out what would buy Olympia Snowe only to be told: NOTHING.

So, there goes THAT proposal. They just need to stop at this point and say: "We can't get 60 votes, let's just get what we can via reconciliation and move on."


[ Parent ]
Yup, right. Really, who wants to hear about yet another "compromise"... (0.00 / 0)
...that fails to muster 60 votes? Is it too much to ask to only go public if the Dem caucus finally unites behind a bill? Imho, Reid should really admit that this is NEVER going to happen and finally get back to pushing for reconcilaition, and for a bill that is acceptable to 51 Senators. This kabuki theatre has dragged on for like an eternity now, ENOUGH ALREADY!

[ Parent ]
if this is the "goody bag" (4.00 / 4)
that the White House was confident House Progressives would accept, then the Progressive Block strategy was flawed from the beginning. I supported the strategy, but if they were always going to fold because of a Medicaid expansion, then it was a waste of people's time.


Join the Iowa progressive community at Bleeding Heartland.

Not so sure (0.00 / 0)
It is highly likely that, without the Progressive Block strategy, the Medicaid expansion would have stayed at 11 million, and not expanded to 15 million.

The Medicare expansion, and the Franken amendment, are also still possible gains from the Progressive Block strategy.


[ Parent ]
if the Franken amendment can be enforced (4.00 / 1)
great. I am concerned they went ahead and said sure, let's up it to 90 percent, because they knew other loopholes in the law, or weak enforcement provisions, would allow widespread evasion by private insurers. Who cares if it's 85 percent or 90 percent if no one enforces the rule?

Join the Iowa progressive community at Bleeding Heartland.

[ Parent ]
Enforcement certainly matters (0.00 / 0)
For regulations to be effective, you need both good regulations and good enforcement.

I can't tell you how well it will be enforced, because I simply don't know.  At the same time, I am not going to say that the entire regulatory process is useless.


[ Parent ]
As I've said before (4.00 / 1)
it's a lot easier and better for government to just provide health care itself than for government to try to make blood-sucking insurance companies do the right thing.

[ Parent ]
We're flying blind with a lot of this (4.00 / 5)
Compared with the insurers, the technical expertise available to us is miniscule - expertise in the way the industry works, existing regulations and how they are circumvented, understanding the drafting of legislative language - and a whole lot more.

From what little I've got to know about the nuggets of corporate welfare in the bill, and about the way in which existing regulations are circumvented (including fancy business structures and accounting techniques to nullify medical loss ratio requirements), I'd assume that a lot of the 'good stuff' in the final bill will be carefully drafted to be not so good in practice.

But - because we haven't got the expertise, we'll struggle to put our finger on what, precisely, is wrong.  


[ Parent ]
That's correct (4.00 / 1)
But it is even worse. Not only are we at an info disadvantage, but they (the industry) had a hand in the drafting of the legislation, will have in regulations that come out of the agencies and will carefully control (through departments set up for this) what, if any , impact they will receive from the regs. The result being further watering down from whatever people think they are passing now.  THe courts remember are also packed with conservatives who will attempt to narrowly conscrue any provisions with ambiguities in it. This is the road ahead. At this point, I am really pessimistic.  

[ Parent ]
yes (4.00 / 1)
They count on that.   Load up a bill with a bunch of subtle but vital loopholes, even if a few Ezra Kleins or Marcy Wheelers catch a few of them and get them corrected by making noise, others will slip through.

This really is a fight about who governs America, the people or the various business lobbies.  It's been a long time since the people landed any kind of win on anything.


[ Parent ]
Just not feeling it (4.00 / 1)
Selling out the needs of the great majority of Americans for 4 million more in Medicaid and (maybe) Franken? Yeah, you got something but it's a loss for the lion's share of the electorate. I'm open-minded and I'm listening, but I'm not feeling it yet...

Self-refuting Christine O'Donnell is proof monkeys are still evolving into humans

[ Parent ]
What is lost? (0.00 / 0)
What does the majority of the electorate lose by passing this bill?

In what way would the majority of the electorate be better off if the bill was defeated?

Keep in mind that I am assuming Stupak is defeated.  But I have an open mind as to how more people will be hurt by passing this bill, than by not passing it.


[ Parent ]
What is lost is... (4.00 / 3)
...a real, truly non-profit public alternative to private insurance. Any real 'check and balance' on health insurance costs. The exchanges are limited to high risk and uninsured people offering only private insurance. We're now mandating the purchase of private health insurance without any real cost containment. We're implementing penalty for not doing so that are completely unattached to any identifiable benefit.

Save Franken (assuming enforcement), there's nothing of value for anyone between 28 and 55 (other than guaranteed access at a high price). And it's still undetermined just what "Medicare" option there will be for those over 55.

In short, the progressive objectives for the non-Medicaid/CHIP electorate have essentially been discarded, while the mandates and penalties remain. That's a loss.  

Self-refuting Christine O'Donnell is proof monkeys are still evolving into humans


[ Parent ]
OK (0.00 / 0)
What is lost is a real, truly non-profit public alternative to private insurance. Any real 'check and balance' on health insurance costs.

That isn't lost. That doesn't exist now. It won't exist if we defeat the bill.

We're now mandating the purchase of private health insurance without any real cost containment. We're implementing penalty for not doing so that are completely unattached to any identifiable benefit.

Since there won't be any cost containment if the bill is defeated either, I will just look at the penalties for the mandates.

An insurance mandate is estimated to hit about 16 million people a year by 2019 in the Senate bill. This is based on the number of people who would remain uninsured--24 million--and assuming that the 8 million undocumented residents in that group either wouldn't pay, or wouldn't be billed.  Those 16 million would have to pay a fine of $750 a year.

That certainly isn't a good thing. But, compared to giving 15 million low-income Americans nearly free health insurance, assisting another 16 million Americans in the purchase of paid private insurance, guaranteed issue for people with pre-existing conditions, and the Franken amendment, I still say pass the bill.

We should work to reduce the mandate penalty.


[ Parent ]
To be clear (4.00 / 1)
I'm not arguing a comparison vs. the status quo, but rather a) vs. our objectives at the outset, b) the expectations of change by the (low information) public vs. what will actually be delivered and c) the inability of 40-seat + 20-seat majorities + a Dem president to enact a policy still favored by good majorities even after all the lies/disinformation.

I guess if what we're seeing now were up for final passage I'd say vote yes. There are some improvements over the status quo. But I'm hard pressed to call it a victory and I'm hard pressed to call losing all our objectives, including the big one consistently favored by a majority of the public, for an additional 4 million more on Medicaid a victory.

Self-refuting Christine O'Donnell is proof monkeys are still evolving into humans


[ Parent ]
there should not be a penalty period (0.00 / 0)
I still have yet to see an argument for why anyone should pay this.  

[ Parent ]
Sen Baucus is cognizant of this (0.00 / 0)
We should work to reduce the mandate penalty.

Being able to watch the debate speeches, I heard Baucus say emphatically that if a person cannot pay for the mandated insurance, nor the fine, they won't have to pay.

He doesn't get into the details so it's not clear if he's referring to people who are employed at a low salary or if he's referring to unemployed.  


[ Parent ]
Medicaid expansion alone is not a victory (4.00 / 4)
Not saying that getting coverage for millions of poor, uninsured is not important, but it's only a part of the larger health insurance mess that needs fixing. Willingness to abandon the needed remedies for the much larger non-Medicaid population, however noble-minded the reason, isn't a smart political strategy. In the long run, undermining Democratic/progressive political support will ultimately hurt the currently uninsured poor too.

In short, Medicaid expansion at the expense of all other objectives is not a victory. Giving the rest of the country a shit sandwich is not victory.

Self-refuting Christine O'Donnell is proof monkeys are still evolving into humans


it is not the level of victory we wanted, for sure (0.00 / 0)
It would really suck if Medicaid expansion is the only real victory for public insurance in this bill. That's for sure.

But, because of thr Medicaid expansion, don't expect more than a handful of progs to vote against the bill.


[ Parent ]
Agreed (0.00 / 0)
However, I expect the Conservadems will vote for a few things they don't like in the end too. Yet somehow they manage to posture and gain real, tangible changes. We just give, they take and then ask for more. Even after the gang of ten compromise. Lather, rinse...

Regardless of how I might vote if put to the test, if I were a member of congress (either body) my public position right now would be opposition. (And I think that's where their activist supporters ought to be right now too.) Yet, there isn't a single Senator on our side willing to be as strident as Nelson, Lieberman et al. It's just depressing and demoralizing ... and not at all victorious feeling.

Self-refuting Christine O'Donnell is proof monkeys are still evolving into humans


[ Parent ]
Stupak? (0.00 / 0)
Have people forgotten about that? Are women's interests, after all, secondary to something else? While I can support Medicaid expansion without public option, no matter what else is on the table, I will never support the bill as long as Stupak is in it; anything that contains Stupak needs to be defeated. I thought DeGette's Pro-Choice Block was still active?  

It is (4.00 / 1)
Stupak certainly is a valid reason to defeat the bill.  However, the amendment will not be in the Senate version, and a deal now looks possible.

[ Parent ]
Pharmaceutical Importation/Ordering Meds From Offshore Pharmacies (0.00 / 0)
It is legal to order limited quantities of prescription medications overseas for delivery in the United States provided the medications are not controlled. Controlled medications are those that have a high rate of abuse such as tranquilizers, sleeping pills, and opiate pain relievers.

Having lost our health insurance and much of our income, I was forced to find a way to buy medications we must have for chronic conditions.  I have been ordering blood pressure medication, asthma inhalers and anti-depressants from non-U.S. pharmacies for a few years now with no problem.

I don't usually leave comments that link to my blog, but in this case, perhaps it will be helpful.

I list a few links to pharmacies that have provided excellent service to my family over the past few years.  It is risky to be sure; the DEA warns people away from offshore pharmacies claiming that some do not provide the real product or are just out for your credit card information.  But if your situation is anything like mine, and there are medications you need for chronic conditions, you may be willing to do what I have done.

I have also listed a few websites that arrange for free or reduced price medications from the manufacturer.

I do not profit in any way by providing this information or sending new customers their way.  I am horrified by the very idea that there are millions of people who cannot afford to see a doctor in order to obtain a prescription or cannot purchase the medication itself for chronic conditions in this crisis.

It is unconscionable and inexcusable, in my view, to price people out of access to doctors and also refuse access to reasonably priced non habit-forming medications without a prescription.  The current set of regulations serves Big Pharma at the expense of American lives.

If the idea of ordering medications from foreign pharmacies on the Internet disturbs you, Mexico may be close enough to justify a road trip so you can buy in person.  

Here's the link
http://open.salon.com/blog/les...

I'm sorry if this post is inappropriate; I'm just trying to pass along some helpful information.


Expanding Medicaid is a dumb idea. (4.00 / 3)
1.  The system is swamped with unemployed people and can't keep up with what it already has.  
2.  The system is punitive.  It treats people like the welfare queens the bill was written for.  People shouldn't have to go through or put up with the hassle and humiliation of welfare and TANF just to get health care.
3. It pays less than Medicare and there are fewer providers willing to accept it.  
4. The system is bureaucratic and expensive because it works on the assumption that everyone is out to cheat them.

Stupid.  


yup. very dumb. and the cms agrees (4.00 / 1)
from the cms report (my bolds):

In estimating the financial impacts of H.R. 3962, we assumed that the increased demand for health care services could be met without market disruptions. In practice, supply constraints might interfere with providing the services desired by the additional 34 million insured persons. Price reactions-that is, providers successfully negotiating higher fees in response to the greater demand-could result in higher total expenditures or in some of this demand being unsatisfied. Alternatively, providers might tend to accept more patients who have private insurance (with relatively attractive payment rates) and fewer Medicaid patients, exacerbating existing access problems for the latter group. Either outcome (or a combination of both) should be considered plausible and even probable.

The latter possibility is especially likely in the case of the higher volume of Medicaid services. Despite a provision to increase payment rates for primary care to Medicare levels, most Medicaid payments would still be well below average. Therefore, it is reasonable to expect that a significant portion of the increased demand for Medicaid would not be realized.

if chris's report is correct, it will be just one more piece of evidence that we are governed by idiots. don't they even read their own cms reports?


[ Parent ]
Not to mention that Medicaid is partially funded by states (4.00 / 3)
and state governments often slash spending since they can't run a deficit (and god forbid they raise taxes).

[ Parent ]
sounds like a terrible program (0.00 / 0)
I'm with you. Let's abolish Medicare!

[ Parent ]
Chris, I said Medicaid.... not Medicare. (0.00 / 0)
If they had put everyone into medicare, subsudized the whole thing with taxes on the rich and other things, and then let the insurance companies compete to sell supplemental and designer policies, I would be fine with that.  Medicaid is not Medicare.  Medicaid is for welfare recipients.  Medicare is for seniors.  But I'm sure you know that, so ???

[ Parent ]
but most people like the chip program (0.00 / 0)
which is medicaid for kids.....

[ Parent ]
I'm just dreaming when I hope (4.00 / 1)
that we've still got a chance for reconciliation, aren't I?

the Medicaid expansion will no doubt be slashed (0.00 / 0)
significantly, but not all the way--just enough to let the progressive wing know who's really in charge here.

There will be no reason for doing this, by the way. Just pure meanness.


I have to admire your persistence, (4.00 / 2)
Chris Bowers, in pushing this bill as a Progressive victory.

I don't believe it is, medicaid expansion notwithstanding, and I'm not even a lawyer.

The lawyer crack is just a passing reference to using the word notwithstanding.

Forget it.

If this bill passes, which I believe it will, it will be a victory for the Democratic Party. And that's a good thing, I guess. But this bill is a far cry from a victory for Progressives.

I think you demean yourself and your audience on this blog by talking medicaid, health insurance for the poor, as the reason Progressives in Congress are going to let this bill pass.

Someone made a comment above about the stigma attached to medicare, as health insurance for the poor.That's a valid point.

There are lots of valid points made in these comments. I also especially like Sacto Steve's comment, at 18:37:

We're now mandating the purchase of private health insurance without any real cost containment.

Without cost containment, there is no reform, there is just some shuffling around, which I think is going to come back and bit Dems in the long run.

On that basis, "we," Democrats and Progressives, will lose in the long run over this so-called reform,


Not medicare - medicaid.....two different programs. n.t (0.00 / 0)


[ Parent ]
No mention here of the 300%-of-poverty-level... (0.00 / 0)
...plan to offer "Basic Health" a la Washington state as part of the latest compromise.  I have seen conflicting reports about whether this is in or out (as with everything else), but for all the reasons Chris says here, this is worth generating some pressure and fight over: even if Basic Health is not really the decent insurance we should aspire to cover all Americans under, the number of those affected is significant.

P.S. And as with any of these groups... (0.00 / 0)
...once you create a framework to cover people, there is a basis for comparison, and the possibility in the future of saying: "Let's let all people who make less than $X" or "all people aged Y - Z"  ... "have what we offer 55-to-64 year olds"... "have Medicaid," etc.

[ Parent ]
Medicaid is not Medicare....... (0.00 / 0)
Medicaid is a welfare program.    

[ Parent ]
Yes, and the Senate bill still contains Medicaid expansion... (0.00 / 0)
...which is a good thing.

[ Parent ]
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