CPI Grossly Underestimate Inflation due to Flawed Health Insurance Adjustment

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by qtrinh3

My fellow regards and market bulls. The headline CPI is 3.2% up YoY while core CPI (excludes energy and food) is up 4.0% YoY. Both beating market expectations and this means JPOW has shut the F**king Door on Inflation right? Right?

US CPI October 2023

Wrong!!!! The US CPI uses a flawed method to calculate the cost of healthcare insurance. Most reasonable regards will use the health premiums that you pay monthly or biweekly. BUT not the Bureau of Labor Statistics (BLS)! Because if you use that, according to this article, premiums went up about 7% YoY based on Kaiser. www.marketplace.org/2023/11/13/how-are-health-insurance-costs-reflected-in-inflation-calculations/

BLS uses an incompetent, idiotic method which doesn’t track the paid health coverage premiums at all…WTF

WTF

So if I pay $24,000 annual premiums but I am healthy and don’t need any service then my healthcare cost is $24,000. But if I am an older boomer who uses $10,000 of hospital services, then I “only” pay $14,000 in healthcare costs. Note in this example, the premiums remain the same. Using these dumb@ss methods, BLS claimed that they overestimated healthcare costs by 37% during the pandemic when everything was shut down. No one could use any healthcare services! And that they need to subtract 4% from the healthcare cost every month from September 2022 to September 2023 to smooth out the calculation.

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BS

Obviously, this is BS and the charts from wolfstreet.com show this manipulation. The author stated that these morons should have been fired for this! Do I calculate my auto insurance cost based on if I get into an accident or not? What about life insurance? How can BLS let this go on for a year before correcting it?

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wolfstreet.com/2023/11/14/the-collapse-of-the-health-insurance-cpi-how-it-became-chickenshit/

Oh BS

Double BS

Anyone here paying the same premiums as in August of 2018? No one is paying these prices! In addition, I can promise you that nowhere did my healthcare premiums didn’t go up (not in 2015, 2016, 2018, or 2019). I just had Open Enrollment and my cost went up 10% from last year! So if you want to believe the 3.2% or the 4% go ahead. If you want to believe rate cuts are coming and QEs again then load up on calls! However, just don’t say that I didn’t warn you!!! Good luck regards!

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