McCaskill Seeks Briefing on FCC Lifeline Subscriber Verification Fixes After OIG Letter
Senate Homeland Security Committee ranking member Claire McCaskill, D-Mo., is again pressing the FCC for answers about “waste, fraud and abuse” in the Lifeline USF program in the wake of recent findings from the agency's Office of Inspector General. Rep. Nydia Velázquez, D-N.Y., and 47 other Democrats, meanwhile, wrote FCC Chairman Ajit Pai, as expected (see 1805020061), urging him not to cut the Lifeline budget as part of his revamp plan. Democrats repeatedly criticized Pai's Lifeline revamp plan (see 1801230075, 1803210061, 1803300045 and 1804260068).
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The OIG wrote Senate Homeland Security in March saying its investigation found almost 48,000 “deceased individuals had been enrolled as Lifeline subscribers between 2014 and October 2017,” more than seven times the number GAO identified in a 2017 audit (see 1706290037), McCaskill said in a letter to Pai we obtained. Pai said during a September Senate Homeland Security hearing that Lifeline fixes are a “top priority” for the agency, prompting McCaskill and committee Chairman Ron Johnson, R-Wis., to delay a legislative response until the national verifier program and other fixes instituted in the 2016 Lifeline overhaul order fully roll out. McCaskill was evaluating legislation that would involve restructuring of the program and a budget cap (see 1709060063 and 1709140059).
McCaskill said she's “concerned about the delayed launch” of the national verifier (see 1712010042) because until implemented, “eligibility verification will continue to be performed by Lifeline providers,” who stand to “make more money if they service more Lifeline accounts.” That “arrangement represents a structural flaw as it increases the risk of fraud and abuse” in the program, she said. “Until the new system is securely implemented, I urge the FCC and [the Universal Service Administrative Co.] to continue efforts to improve accountability within the current systems.” McCaskill sought an FCC briefing by May 23 that would identify what it's doing to “prevent Lifeline providers from enrolling deceased individuals or claiming reimbursements on behalf of deceased subscribers.” She also wants to know how the FCC penalized Lifeline providers “for enrolling or claiming reimbursements on behalf of deceased subscribers” and what the agency is doing to verify potentially ineligible subscribers.
The FCC “has taken action to address this problem,” a spokesman said. “USAC recently started using information from the Social Security Administration’s Death Master File in the identity validation process, and this step has already prevented hundreds of deceased individuals from enrolling in the program. Nonetheless, more needs to be done. That’s why the Chairman continues to pursue additional reforms” via his pending NPRM, the representative said, “and is urging USAC to complete the work necessary to get the Lifeline National Eligibility Verifier up and running as soon as possible.”
Velázquez and the other Democrats cited the importance of Lifeline in Puerto Rico as it recovers from hurricanes Irma and Maria as a reason Pai shouldn't cut the program's budget. Lifeline “fills a critical gap in Puerto Rico, and given the devastation from Hurricane Maria, this program is now more important than ever,” the lawmakers wrote Pai. “After many communities endured widespread lack of communications post-Maria, they should not be forced to endure additional hardship.” The commission is reviewing the letter, a spokesman said.