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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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By Chaser on 2/13/2013 3:39:33 PM , Rating: 2
10-20 or so years ago the U.S. government had a means to mitigate entitlement program abuse: individual pride and shame. But today, and for the last four years in particular, we have many leaders in Washington DC that resort to class warfare and petty jealousy to roll out the red carpet and ring the dinner bell for 60% of the federal budget: rampant entitlement programs. Today people collect their checks with impunity. We are simply not the country of the 1980s or even when Social Security was enacted.

Today the U.S. hemorrhages money well beyond our borders. Once our credit limit gets cut -because of the inability service much less repay our debt- those that thrive on these programs and vote for the leadership that encourages them will be the first to suffer.




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