August 17, 2007
| Inflation Edges Down. The Consumer Price Index -- the measure used to determine the annual cost of living adjustment for military retired pay and other federal annuities - took a downturn for the first time in seven months. |
| MOAA Flip-Flops on Drugs. Last week we reported on several medications that are moving to the $22 copay level in TRICARE's drug formulary, and inadvertently flip-flopped the conditions some of the drugs are meant for. |
| Who Says Vets Can't Salute the Flag? The Senate has passed legislation that would make it clear they have that option. |
Inflation Edges Down
A surprising mid-summer decrease in energy prices drove a downturn in the July Consumer Price Index (CPI), the measure used to determine the annual cost of living adjustments (COLAs) for military retired pay, Social Security, and other federal annuities.
On August 15, the Bureau of Labor Statistics announced the July CPI value, indicating that inflation decreased 0.1% from the June figure. That means inflation has risen a cumulative 2.3% for the first 10 months of FY2007.
What does that imply for the 2008 COLA? In the past 30 years, the CPI only decreased twice between June and July (in 2001 and 2004). In both of those years, inflation rose only modestly during August and September.
That's a small sample size and makes for an iffy projection, but if that experience holds true for the next two months of 2007, we're likely looking at a 2008 COLA in the range of 2.3% to 2.5%.
MOAA Flip-Flops on Drugs
After hitting "send" on last week's MOAA Legislative Update, we received quite a number of member inputs letting us know that we had inadvertently reversed the conditions that some of the drugs listed in the article "More $22 Drugs" are used to treat.
We've provided a corrected version below, just for clarification. Thanks for your eagle eyes in keeping us on our toes!
"The acid reflux medications Prevacid, Zegerid, Protonix, and Aciphex will be moved to the third tier, leaving Prilosec and Nexium at lower copays. Even though it is not generic, Nexium will be offered at the generic copay level of $3. These changes will take effect on October 24.
The blood pressure medications Avapro, Avalide, Benicar, and Diovan will move to the third tier effective November 21."
For a complete (and correct) version of the entire article, please visit MOAA's Web Site.
Who Says Vets Can't Salute the Flag?
Have you ever been confused whether you're supposed to put your hand over your heart or if you're authorized to salute when the U.S. Flag passes or the national anthem is played?
Current law (Section 9 of title 4, United States Code) says that veterans and servicemembers not in uniform should put their hands over their hearts. It doesn't expressly say they're not authorized to salute the Flag -- but it doesn't say they can, so that's the implication.
That's a sore spot for many veterans, for whom the salute is a point of pride in their service. Sen. James Inhofe (R-OK) and Rep. Dan Boren (D-OK) introduced legislation (S. 1877 and H.R. 3380, respectively) to change the law to state that those present in uniform "should render the military salute. Members of the Armed Forces and veterans who are present but not in uniform may render the military salute [italics added]."
Last month, on July 25, the Senate approved S. 1877 by unanimous consent, and it has been forwarded to the House for consideration.
MOAA fully supports this change. Please note that it does not mandate the salute for members and veterans not in uniform, but simply clarifies that they are authorized to honor the Flag with a salute rather than the hand over the heart if they prefer.
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