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The video discusses the limitations of Body Mass Index (BMI) as an indicator of health. The presenters, Coleman and Phil, share similar height and weight, resulting in the same BMI, yet their body compositions differ—Phil has more body fat, while Coleman has more muscle. The BMI formula calculates weight in kilograms divided by height in square meters. Ranges are defined as underweight (BMI < 18.5), healthy (18.5 to 24.9), overweight (25 to 29.9), and obese (BMI > 30). The narrative highlights the inadequacy of BMI as it fails to account for individual differences in body composition, leading to potentially misleading health assessments.