Lifeline NV Gets Mixed Reception From State Officials

As the FCC presses on with the Lifeline national verifier rollout, some state officials continue to voice concerns about incomplete access to state databases and other issues. Other state commissioners told us they haven’t heard any complaints, though one said his agency might not get any even amid problems. The NV is midway through a state-by-state launch and is designed to make signup and reverification more automatic. Those on the front lines see growing pains and worry the poor could be incorrectly excluded from the approximately $1 billion annual federal program (see 1907080009).

Concerns involve incomplete access to databases of government programs for low-income Americans that would quickly confirm eligibility, plus kinks in a new, test application programming interface (see 1909200015). The importance of connecting NV to USDA's Supplemental Nutrition Assistance Program databases in states scheduled for hard launches is discussed in recent FCC filings from TracFone and Smith Bagley in docket 11-42.

Vermont asked the FCC for a six-month extension of its scheduled Oct. 23 hard launch. The state and Universal Service Administrative Co. “have been diligently negotiating a data-sharing agreement” to automatically process Lifeline applications, nonpartisan Vermont Public Utility Commissioners Sarah Hofmann and June Tierney wrote in Thursday's waiver request in FCC docket 17-287. “Unfortunately, the agreement is not in place yet, and without it, Vermont's Lifeline-eligible applicants risk having to verify their eligibility for Lifeline manually, a process more labor-intensive and prone to error than an automated one.” Strictly complying with the hard launch isn’t in the public interest “because it would prevent many otherwise eligible low-income consumers from receiving critical Lifeline benefits during this transitional period,” the commissioners said.

The New York Public Service Commission sought waiver of the state’s Oct. 23 hard launch deadline earlier this week, saying it would likely cause eligible low-income consumers to be denied benefits (see 1910070068). The Public Utility Law Project worries the FCC will look at the request and decide that granting waivers “will derail their progress," said PULP Executive Director Richard Berkley. FCC goals “shouldn’t override facts on the ground, but this agency doesn’t seem too concerned about that stuff.” NARUC also urges slower general rollout (see 1907240043).

California Commissioner Genevieve Shiroma has “concerns with a federal administrator given the sharp decreases in participation that have resulted from the National Verifier in the states that have moved to the system so far,” emailed Shiroma, appointed this year by Gov. Gavin Newsom (D). The FCC hasn’t set launch dates there. California PUC Commissioner Martha Guzman Aceves told the FCC the NV shouldn’t come until it has Medicaid and SNAP database access (see 1902200054).

“Continued rollout of the National Verifier is critical to reducing waste, fraud, and abuse in the Lifeline program," an FCC spokesperson emailed Thursday. "Establishing automated connections to federal and state eligibility databases is key to the efficient and effective operation of the Verifier, and the FCC has been actively pursuing these connections." An automated connection to national Medicaid, announced last month (see 1909180026), means up to 60 percent of Lifeline-eligible customers can be quickly verified, she said. "The FCC has also established automated connections with 12 states so far, with more on the way. We have long been, and continue to be, open to working with any state that seeks to establish such a connection."

Lifeline administrator USAC declined to comment.

'Real Trouble'

“Lifeline is still in real trouble,” emailed Nebraska PSC Commissioner Crystal Rhoades (D). Nebraska, like New York and Vermont, is part of the sixth phase hard launching Oct. 23.

“Great progress was made with the Medicaid databases, but there are still an awful lot of people who qualify under another program who are going to have problems being verified because databases are inadequate, don't exist, or aren't connected," Rhoades said. "There are still a lot of people who are going to lose service because the FCC wanted to get this done quickly instead of correctly.”

“No progress with our Department of Social Services to allow USAC access to their database,” emailed South Dakota PUC Vice Chairman Chris Nelson (R). The DSS oversees both state Medicaid and SNAP databases in South Dakota, which was part of the 2nd round of states that hard-launched in January. “The SNAP database is the one we were most interested in accessing since USAC was working on accessing the federal Medicaid database,” Nelson said. The department “has told us that they are not going to cooperate with USAC for access ‘at this time,’” he said. “Very frustrating for our telecom providers who would like to see this access happen to smooth out the Lifeline application and reverification process.”

South Dakota’s DSS “worked closely with USAC to establish a connection, but unfortunately we are unable to participate at this time due to limitations within our current eligibility system,” a department spokesperson emailed. “We are in the process of replacing our eligibility system, and are hopeful that once we have a new system in the next few years, we will be able to provide the information needed to participate. Until our eligibility system is able to accommodate this request for automation, Department of Social Services staff will continue to assist customers in applying for the Lifeline program.”

Washington Utilities and Transportation Commission staff are “monitoring” the NV rollout with the Washington Department of Social and Health Services (DSHS), which administers state Lifeline, emailed Consumer Protection and Communications Director Amanda Maxwell. The state soft launches this Friday. “The UTC consumer protection team has received authorization and training in the verification system in order to field consumer complaints and inquiries about Lifeline discounts,” she said. “As the rollout progresses, we will take any necessary action to address concerns as they arise and will continue to work with DSHS, NARUC, and regulated telecom companies to ensure all eligible customers receive the appropriate discount.”

No Complaints?

“We’re not aware of any complaints” in Connecticut, hard-launching later this month, said Public Utilities Regulatory Authority Commissioner Michael Caron (R). “There’s not necessarily a reason we’d have complaints," including because Lifeline customers might not know to call PURA if there's a problem, he said: “We’re actually a little blinded here.” It’s now on PURA’s radar, and Caron said he might check in with providers.

North Dakota’s transition to the NV was “relatively smooth,” said Commissioner Randy Christmann (R). It's a second-round state that hard-launched in January. “Long overdue,” said Christmann, saying he had long had concerns about “potential fraud and abuse” and “we’ve not been made aware” of Lifeline subscribers losing benefits. “I really don’t see much reason why they should,” he said. Customers or their provider must manually confirm eligibility, said Victor Schock, the PSC’s public utility analyst.

Christmann blames low awareness of the Lifeline program for decreases in subscribers over the last five years: “There are certainly more households in North Dakota that would qualify for this benefit than are getting it.” Christmann’s looking into how to improve that.

The Utah PSC “has not received any complaints,” emailed Chair Thad LeVar. There, part of the first round that hard-launched November last year, some landline providers' subscribers fell from January to June, emailed Utah Commerce Department Public Utilities Division Utility Regulator Shauna Benvegnu-Springer. “Whether [the decreases] were to de-enrollments or termination of service by the customer or provider, that information is not provided.” Some other providers had numbers increase, she said.

“The process has been smooth for Missouri,” emailed PSC Commissioner Maida Coleman (D). The NV launched there in December and became fully operational in March. The agency hasn't received any complaints about the NV, Coleman said. "The use of an independent third party to verify subscriber eligibility should help ensure program integrity by allowing only qualified consumers to be enrolled.”

Michigan PSC staff “have not heard of any issues from providers or Lifeline customers regarding the National Verifier,” said Telecom Division Director Robin Ancona. The NV soft-launched March and hard-launched in June in Michigan, where the NV electronically checks Medicaid, SNAP, Supplemental Security income and federal public housing assistance. “There have not been any unusual increases in complaints that would raise concern,” the staffer said. Based on USAC-provided information, “we also have not seen an unusual drop in Lifeline customers,” she said.

'Work in Progress'

It's "a work in progress," said Kelley Drye's John Heitmann, who represents providers. He cited as positive the recent addition of Medicaid databases from the Centers for Medicare and Medicaid Services (see 1909180026). He said it's great the NV program launched an API test environment, but it must eliminate some unnecessary redirects and other glitches. "I think we'll get there," he said. "Adding document transmission functionality to the API is the most important thing that the FCC and USAC can do to help eligible consumers overcome hurdles to program participation caused by the National Verifier," Heitmann emailed.

"Lifeline is going through program changes," said Matt Gerst, CTIA vice president-regulatory affairs, during a USF seminar this month. CTIA supports USAC and the FCC as they continue rollout, he said. "Millions and millions really do need access. We hope it's a healthy program going forward." He predicted the recent addition of Medicaid databases will make the NV process smoother. FCC Chairman Ajit Pai "was personally involved in making that happen," Gerst said.

USTelecom supports "getting the states to work with USAC as closely as they can," said Mike Saperstein, vice president-policy. He said some members have experienced "administrative hiccups" in states where NV was launched, and they're resolved. He said USTelecom members back the verifier as a good way to standardize the program.

State consumer advocates nationally have concerns “that we’re seeing a drop in people enrolled in the Lifeline program,” said PULP's Berkley, also on the National Association of State Utility Consumer Advocates telecom committee. Manual application is more difficult now and the NV has access to incomplete data. Adding a federal Medicaid database was a good step but doesn’t capture more than 60 percent of those who would be Lifeline-eligible, he said.