THE Council for Medical Schemes (CMS) has summoned the Genesis medical scheme board of trustees and principal officer to a meeting, saying it is concerned about the governance of the scheme.The council wants Genesis to explain why it is spending so much on litigation, why it has failed to comply with a Supreme Court of Appeal ruling on the provision of prescribed minimum benefits (PMBs), and why its solvency ratio is almost six times higher than the statutory requirement of 25%, according to the head of the council’s benefits unit, Paresh Prema. The council had "a lot" of governance concerns about Genesis, he said.Genesis had 20,473 beneficiaries and a solvency ratio of 145.1% in 2014, according to the council’s most recent annual report.Prema said Genesis’ high solvency ratio — which measures members’ accumulated funds against their annual contributions — might indicate the scheme was building reserves at the expense of member benefits.It has been involved in several high-profile l...
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