Verification procedures should be strengthened to prevent “double-dipping” in the...

$146.6 million in first quarter 2010 shows why it is urgent to ensure legitimate enrollment,” said the Public Utilities Commission of Ohio. “While under-enrollment in Lifeline was always a concern in the past, we believe that legitimate enrollment is the new concern.” The Ohio commission recommended a clearinghouse be used to certify legitimate enrollment. The Public Service Commission of the District of Columbia said it would be inappropriate for service providers to have access to each others’ lists of subscribers for verification purposes. Instead, a third party, like the Universal Service Administrative Co., could perform audits. However, the District commission said, there are no rules on what should happen once double-dippers are identified. The Florida Public Service Commission said any national database of applicants would need to be maintained under strict confidentiality. The D.C. commission also said it supports including broadband in the low income program. Nexus Communications said the FCC should review the eligibility, verification and outreach rules “as they pertain to new technologies.” It cited a Centers for Disease Control and Prevention report that said 36 percent of adults in poverty and 29 percent of those near poverty have only wireless telephones. The Ohio commission encouraged the board to look at income guidelines set by qualifying programs. Lifeline participants can either qualify directly with Lifeline, which sets an income guideline at 135 percent of the federal poverty level, or by participating in one of a number of qualifying programs, including the school lunch, food stamps and Medicaid programs. But the differing income guidelines mean a family of four qualifying directly with Lifeline could earn only $29,768, but that same family qualifying through participation in the school lunch program could earn $44,000, the Ohio commission said. The Florida commission said Florida automatically enrolls participants through the Department of Children and Families, but it recommended against a federal mandate for automatic enrollment. The Florida commission also recommended that prepaid providers be required to contact Lifeline customers who don’t use the phone for 60 days. If there’s no response, the phone should be deactivated, it said, rather than allowing the carrier to continue issuing minutes and collecting reimbursement. By following this process in Florida, the fund saved $8.5 million in six months from one provider, it said.