Aging and Disability Services Council Sharon Swift Butterworth ...

DADS has determined that the proposed amendments and new sections may have an adverse
economic effect on small businesses and micro-businesses, because DADS projects some
CLASS providers will be adversely impacted by a loss of revenue when they are not permitted to
submit claims for the costs of obtaining specifications for adaptive aids and minor home
modifications, or the administrative effort in requisitioning adaptive aids, dental treatment,
medical supplies, and minor home modifications. In 2008, 12 entities provided CLASS services
to individuals. Based on 2008 Texas Medicaid cost reports for the CLASS Program (the most
recent data available), of these entities, seven were small businesses, of which one was a microbusiness.
The projected economic impact for a small business and micro-business is $6.17 per month, per
individual.
In preparing the proposed rules, the agency considered several alternatives to minimize the
adverse economic impact on small and micro-businesses. Specifically, the agency considered
continuing to reimburse all CLASS providers for the cost of obtaining specifications and
requisitioning items, but determined that the savings required by the General Appropriations Act
(Article II, Special Provisions, Section 17(a)(5), H.B. 1, 82nd Legislature, Regular Session,
2011) would not be achieved using that alternative. Similarly, the agency considered continuing
to reimburse CLASS providers that are small and micro-businesses for the cost of obtaining
specifications and requisitioning items, but determined that the required savings would not be
achieved using that alternative either, especially given the high percentage of CLASS providers
that are small and micro-businesses. Finally, the agency considered reducing reimbursement for
the cost of obtaining specifications and requisitioning items to Home and Community Based
Services (HCS) Program providers, in addition to CBA and CLASS providers to save costs and,
lessen the effect on CLASS providers. However, the agency determined that HCS providers
would be subjected a disproportionately large reduction in revenue, as compared to CLASS
providers, because other reductions in revenue have been imposed on HCS providers recently.
Thus, the agency determined that small and micro-businesses will incur the cost of complying
with the proposed rules in an effort to achieve the cost savings required by the General
Appropriations Act.
PUBLIC BENEFIT AND COSTS
Jon Weizenbaum, DADS Deputy Commissioner, has determined that, for each year of the first
five years the amendments and new sections are in effect, the public benefit expected as a result
of enforcing the amendments and new sections is a cost savings for the state, while ensuring that
an individual enrolled in the CLASS Program continues to receive needed program services.
Mr. Weizenbaum anticipates that there will be an economic cost to persons who are required to
comply with the amendments and new sections. The probable economic cost to persons required
to comply with the amendments and new sections for each year of the first five years the
amendments and new sections are in effect will be $6.17 per month, per individual. The
amendments and new sections will not affect a local economy.
TAKINGS IMPACT ASSESSMENT
- 6 -