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Carriers say most people drop simply didn't respond to requests

The United States government has collected a tax on phone lines under the Lifeline program that began back in 1984. The purpose of this tax was to provide phone service for people who were unable to afford it on their own to ensure that these people weren't cut off from emergency services, jobs, or family. Every American citizen who has a phone line has paid into this Lifeline program.

Payouts in the program in 2008 amounted to $819 million. In 2012, the U.S. government spent $2.2 billion providing free phone service to low-income Americans.
In an effort to squash government waste, the FCC believed that many of the Americans who were claiming the free phone service were not eligible so it tightened the rules last year forcing carriers to verify that existing subscribers were in fact eligible.

The Wall Street Journal reports that far more subscribers to the program were dropped than expected. A review has shown that the top five carrier recipients of Lifeline support had a total of 41% of over 6 million subscribers that couldn't demonstrate their eligibility or simply didn't respond to requests for certification.

These top five carriers were AT&T, Telrite Corp, Tag Mobile USA, Verizon, and Virgin Mobile. Together these carriers account for 34% of all Lifeline subscribers as of May 2012. The Lifeline program is open to subscribers that meet the federal poverty guidelines, are on food stamps, Medicaid, or other assistance programs.

Previous program rules allowed consumers to certify themselves for free phone service without having to prove they met federal poverty guidelines.

Source: Wall Street Journal

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Free phone = Obama vote
By half_duplex on 2/13/2013 1:53:37 PM , Rating: 1

RE: Free phone = Obama vote
By Rukkian on 2/13/2013 4:23:09 PM , Rating: 2
And Bush, and Clinton, and Bush and Reagon. This program was started in the mid 1980's.

I don't agree with handing out cell phones, as they are not neccessary, but this is not an "Obama Phone" as much as you would like to believe it is.

RE: Free phone = Obama vote
By Reclaimer77 on 2/13/2013 5:52:38 PM , Rating: 2
Yes it was started then, but it's EXPLODED under Obama. Obama has taken every entitlement program and tripled it, at least.

The problem with doing this is scale. It's human nature to abuse something that's perceived as being "free".

Of course it's an ObamaPhone. Get a clue and a life.

RE: Free phone = Obama vote
By MadMan007 on 2/14/2013 12:30:59 AM , Rating: 2
Unless you think that every single program increase under Obama is fraudulent, it's actually indicative of wider social and economic problems - the recession played a role, obviously, but it also points to a previously 'hidden underclass' that wasn't reflected in the programs. It's not surprising you look at it as 'omg evil Obama', but think about the broader reasons why these programs have exploded. There must have been a *lot* of people who qualified for but weren't on these programs - that's a serious societal problem. Maybe it bothers you that the increase in the programs has made it so clear...I'd like to think so, but I'm not sure you care very much about anyone but yourself.

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