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I just HAVE to believe that this was an error. If this was done knowingly, you can crush them. Just go to their office with the bill and a copy of the obituary. Place them on the desk and say you think there was a mistake. If they say "oh my, we're so sorry for your loss" and rip it up, call it a day. If they say "that's our policy", make them clarify. Ask "Are telling me that my father's dying was not a valid reason for your charges being waived?" and they confirm, take your paperwork to the local media circus and let them run with it. You won't have to do anything after that.
Don't think about it another minute, you have bigger things to be concerned with. Sorry for your loss dude.
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