Lifeline National Verifier Shortcomings Seen, Mixed With Hope for Improvements

The rollout of a Lifeline national verifier (NV) continues to spark concerns that many eligible low-income consumers will be thwarted from signing up for the program or de-enrolled if already subscribing, though there are signs of progress. The Universal Service Administrative Co., charged by the FCC with implementing the NV, lacks application programming interfaces (APIs) for providers and electronic access to many key government databases. That undermines automated verification of consumer eligibility, and manual processes are cumbersome, stakeholders told us.

“We're still in a holding pattern," seeing if the FCC and USAC “will change positions,” said Nebraska Commissioner Crystal Rhoades, who authored a NARUC Lifeline resolution in February. “I haven't heard much on this front since last month." Rhoades said she hasn’t had further conversations with USAC or the FCC, but spoke with congressional staff for several members. The FCC hasn’t announced when the NV will launch in Nebraska.

Others say USAC and FCC staffers are working to address the concerns and make improvements. "We were heartened by the response at USAC and the FCC," said Dana Floberg, Free Press policy manager, who with other consumer advocates met with officials at both recently (see 1903010038), according to a docket 17-287 filing. "There seems to be an understanding that these problems are real, that they’ve created barriers to people using Lifeline, and they seem to be interested in getting beyond them."

Lifeline advocates warned NV system shortcomings greatly complicate verification and enrollment processes as it's rolled out. They said it's not only more difficult to verify the eligibility of potential new subscribers but also to reverify existing subscribers, putting them at heightened risk of de-enrollment, which could deepen a decline in program subscribership (see 1901230036). At the February NARUC meeting, Michelle Garber, USAC vice president-Lifeline, said her organization hadn't de-enrolled any subscribers in NV-launched states (see 1902110003), but some provider representatives said they had (see 1902120023), prompting USAC to clarify that it would do all NV de-enrollments (see 1902130052).

The NV "is critical to reducing the unacceptably high rate of improper payments in the program," emailed an FCC spokesperson Friday. "Once fully implemented, the Verifier will also make the program more efficient and effective for providers and consumers alike through automated connections to federal eligibility databases, and streamlined manual review of applications when necessary. The FCC is actively pursuing these automated connections. In the meantime, we will continue to work with all stakeholders so that low-income Americans have access to vital communications services, and Lifeline funds are protected against waste, fraud, and abuse.”

“The FCC, carriers and USAC are talking about an [API] model that would balance the carriers' need for automation with the program’s need to protect the integrity of the system and the sensitive data that it holds,” Garber told us. She said USAC will continue to focus on gaining access to federal databases that help all states, while supplementing that with state-by-state database access.

State SNAP Issues

South Dakota Commissioner Chris Nelson contacted his U.S. senator, John Thune, Republican whip and Communications Subcommittee chairman, “to make his office aware of the current difficulty,” emailed Nelson, who raised concerns at NARUC about USAC not accessing Supplemental Nutrition Assistance Program (SNAP or food stamps) and Medicaid databases in states with fewer Lifeline customers. Follow-up conversations with USAC “have been helpful in understanding how they have arrived at this troublesome point,” and Nelson requested “some additional information from [USAC] related to how the 'cost effectiveness’ of pinging any given database was determined,” but as of Thursday hadn’t heard back, he said.

"There is positive movement," said National Consumer Law Center's Olivia Wein. "Parties are talking to each other and listening to what the pain points are, and looking to move forward with solutions." She noted USAC efforts to gain electronic access to a Medicaid national database, which officials say could cover about 60 percent of those eligible for Lifeline. The timing appears to be largely up to Medicaid administrator priorities, she said. There's no national SNAP database, so USAC access is needed to databases state by state, she said. A recently enacted farm bill mandates creation of a SNAP national accuracy database, which could eventually help, she added. Wein is a USAC board member but said she was speaking as NCLC staff attorney.

"I think there'll be improvements" on APIs, said Judson Hill, adviser to TruConnect and Sage Telecom Communications, who noted CTIA has been working on the issue. Hill, a Republican ex-state senator from Georgia, recently met with Commissioner Mike O'Rielly and aides to Chairman Ajit Pai and Commissioner Brendan Carr (see 1903050031). "They're listening," he said.

“As more states roll out, you’re going to get more potential political context," Hill said. "If a bunch of people in a state can’t access a program, they communicate with their congressmen and senators in some way.” Representatives of other Lifeline providers didn't comment.

Launching in Phases

NV use is mandatory in the 15 states and one territory where it has fully launched: Colorado, Mississippi, Montana, New Mexico, Utah and Wyoming on Nov. 2; Hawaii, Idaho, New Hampshire, North Dakota, South Dakota and Guam on Jan. 15; and Missouri, North Carolina, Pennsylvania and Tennessee March 5. More such "hard" launches are coming, after a Feb. 6 "soft launch" (where NV use is optional and parties can test systems) in Alaska, American Samoa, Delaware, the District of Columbia, Maine, the Northern Marianas, Rhode Island and the U.S. Virgin Islands. The FCC Friday announced a soft launch Tuesday in Indiana, Kentucky and Michigan.

North Dakota Commissioner Randy Christmann hasn’t “had many complaints about the National Lifeline Verifier but share[s] disappointment that once again there is a supposed federal solution to a problem, except they are unable to live up to their promises,” he said. North Dakota’s Department of Human Services gives Medicaid and SNAP recipients dated forms that consumers can use to show they qualify for Lifeline, which “eliminates the problem of trying to verify with cards that have no dates,” Christmann said.

Utah wireline providers haven’t reported any de-enrollments, nor have the state’s five wireless providers complained, said Utah Commerce Department Public Utilities Division Utility Regulator Shauna Benvegnu-Springer. Utah doesn’t charge USAC to access SNAP or Medicaid databases to determine eligibility, she emailed. “For the remaining databases USAC has federal access. A small amount (fewer than 100) of subscribers qualify by income which are manually checked by USAC.”

“We are really too early in the game here in Idaho,” which hard launched Jan. 15, said Idaho Public Utilities Commission Utility Analyst Carolee Hall. The New Hampshire Public Utilities Commission “has not received any feedback from customers or carriers regarding their experiences” since the Jan. 15 hard launch, said a spokesperson.

CPUC Engaged

Preventing fraud is important and a national verifier “could be good,” but the system must “be able to verify,” said California Public Utilities Commissioner Martha Aceves Guzman. Connecting to federal Agriculture Department and Health and Human Services databases will benefit California, as long as there’s no delay to consumers accessing Lifeline, she said.

The California commissioner supported NARUC’s resolution urging the FCC and USAC to ensure the national verifier accesses state databases required to automatically check user eligibility. No date has been announced for launching in California, but before it comes USAC must establish a connection with Medi-Cal and CalFresh, the state’s names for Medicare and SNAP, Aceves Guzman said. There's bipartisan interest in California to help make that happen, as “the vision is a shared one,” she said.

FCC commissioners were “all extremely kind and asked follow-up questions,” though “nobody really responded with an answer,” in meetings last month (see 1902200054), Aceves Guzman said. “We have some follow up to do to reinforce our willingness to be their partners.”

Commissioners clarified that while “concerned about fraud,” they’re “not trying to do away with the Lifeline program,” CPUC Communications Division Director Cynthia Walker said on the same call as the commissioner. “My big takeaway was we need to be talking to the FCC staff and we need to be engaging with USAC.” California manages its own large Lifeline program and is changing the administrator that verifies eligibility for the state and -- for now -- federal program, she said. “That transition is going to be extra tricky for California, and I know that everybody looks at the end of the year as a big challenge, and so I just think we need to start having more conversations.”

Asked if California might seek exemption from the NV if the state deems it not ready, Aceves Guzman replied: “It’s a little early to call that one.”