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Hydrogen is a medical aid fund with over 450 000 members. Data on the number of claims received and theaverage value of these claims by the different medical categories (GPs, specialists, dentists and medicines) is given for 2008 and 2010 in the following table:
Claim type
2008
2010
Claims(1 000s)
Ave.value (R)
GPs
20
220
30
255
Specialists
720
25
822
Dentists
10
580
15
615
Medicines
50
400
70
438
(a) The management of the medical aid fund would like you to provide them with one overall figure to represent how the number of claims (i.e. quantities) have increased over the three years from 2008 to 2010. Use 2008 as the base year.
(b) Calculate the quantity relative for each claim type to identify which claim type showed the largest increase in the number of claims over this three-year period.
(c) Determine the change in the overall value of claims received from 2008 to 2010. Use the Laspeyres approach with 2008 as the base year.
(d) Interpret the result of (c) for the management of the Hydrogen medical aid fund.
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