Phony Phones

In February we called them "Phones for the Poor."  In June we called them "Obamaphones." The result of the focus and publicity is, well, the so-called lifeline phones are as easy to fraudulently secure as ever. A National Review scribe in a single month "received three shiny new cell phones, courtesy of American taxpayers, that should never have fallen into [her] hands."

To be eligible for Lifeline, the applicant is supposed to be receiving some significant government benefit — food stamps, Medicaid, Supplemental Security Income, public housing assistance, etc. But because welfare eligibility has expanded under the Obama administration, more people than ever before are qualified to receive “free” cell-phone service — part of the reason why Lifeline mobiles have become commonly known as Obamaphones. Alternatively, applicants can qualify if their household income is less than 136 percent of the federal poverty line.

But as with any federal program with too much funding, too little oversight, and perverse financial incentives, Lifeline has become infamous for rampant fraud and abuse. There have been news reports about recipients flaunting dozens of subsidized phones. And in February, the Wall Street Journal reported on an FCC audit of the top five Lifeline providers, which found that “41% of their more than six million subscribers either couldn’t demonstrate their eligibility or didn’t respond to requests for certification.”

The FCC supposedly buckled down on eligibility standards last year and established other safeguards aimed at reducing fraud. I was curious about how tough it was to get one of these phones, so last month, I hit the streets of New York. And out of respect for the law and my journalistic integrity, I did not lie to obtain a phone.

Phone recipients sell their ill-gotten benefit to buy drugs, handbags, or whatever.

The free for all handout method is working so well that Dear President is applying it to Obamacare subsidies.

God help us.