Following the study "Cost Analysis of BPDPK members admitted at the Regency Hospitals of Madiun, Ponorogo and Magetan, in 1984" a break-even point (BEP) approach was conducted. The purpose of the analysis was to support the idea of reimbursing all expenses needed to hospitalize a BPDPK member in the 3rd class, as long as an equilibrium of budget allocation and realization of the needs of the patient was achieved. Secondary data obtained from the study mentioned above were analysed. Only data of the Regency Hospital of Madiun was taken. Out of 563 cases mentioned in the previous study, 350 or 62.2 % was included in the analysis. It covered 10 most frequent cases admitted in the hospital. Three kinds of budget allocations were considered : 1) the available funds, 2) realization of the budget (used funds) and 3) funds to reimburse claims. Three alternatives were put forward, a) BEP is reached above all needs of patients, where all expenses can be reimbursed by BPDPK. If the available funds equal, b) BEP is reached at 318 cases or 90.8 % if all patients are treated at the VIP class but if they are treated in the 2nd or 3rd class, BEP is reached above 100 % (more than 350 cases), or with available funds BPDPK is only able ro reimburse 318 cases. If the available funds equal, c) if all cases are treated in the VIP class. BEP is reached at 170 cases (48.6 %), if treated in the 2nd class) BEP is reached at 285 cases (81.3 %), but if all cases are treated in the 3rd blass, BEP is reached at 309 cases (88.4 %). The components for medicines at the VIP, 2nd and 3rd clases are respectively 16.4 %, 35.2 %. and 36.5 %. The components for board and lodging are respectively 81.8 %, 61,8 % and 601 %. From the above figures it is justified to reimburse all expenses, if a member is treated in the 3rd class, but for those who are treated in the VIP class, for board and lodging only a portion is reimbursed.