In December 2023, the Council for Medical Schemes published the 2022 Medical Schemes Industry
Report and Annexures. On closer inspection on the annexures, the regulator noticed significant
expenditure trait on Annual General Meetings (AGMs) hosted by medical schemes.
AGMs are an essential governance component in the medical schemes environment, presenting a
chance for schemes Principal Officers, Board of Trustees and Administrator(s) to account for the
management of the scheme to beneficiaries.
In the regulatory environment, medical schemes must therefore hold AGMs consistent with scheme rules
on or before a particular date. This is an opportunity for medical scheme members to voice opinions, ask
questions and present motions.
According to a new research report published by the CMS titled Annual General Meetings of Medical
Schemes: Importance and Challenges Associated with Limited Member Participation, of the 71
registered medical schemes, 33 of these incurred AGM-related expenses totalling R29,2 million
collectively covering 8.1 million medical schemes beneficiaries.
Five (5) medical schemes exhibited significantly higher spending than other schemes bearing a
substantially higher proportion of the total AGM expenditure. These schemes included Sizwe Hosmed
Medical Fund, Medipos Medical Scheme, Engen Medical Benefit Fund, Motohealth Care and Foodmed
Medical Scheme.
Other schemes with possible high AGM-related spending include University of Kwa-Zulu Natal Medical
Scheme, TFG Medical Aid Scheme, Cape Medical Plan, SAMWUMed, Discovery Health Medical
Scheme.
Remarkably, medical schemes allocate considerably higher expenditures towards hosting AGMs,
particularly when juxtaposed with schemes possessing a significantly larger membership profile.
This spending pattern, deemed worrisome by the CMS, necessitates for an in-depth investigation into the
potential factors contributing to these extravagant costs associated with hosting AGMs in the evolving
landscape of medical schemes.
The research study can be accessed via the https://rb.gy/388vj5
