insurance plan

Let the family's medical expenses = x
Then amount that the family paid by the plan = 800 + (x - 1000) = x - 200
Extra amount paid by the plan = x - (x - 200)= 200
Therefore, amount that the family paid by the plan = extra amount paid by the plan + $800
x - 200 = 200 + 800
x = $1200
The correct answer is B.

vishubn wrote:i second that , Can u please explain ?

In this question the key point is that at which point the family and the company will come at the same level.
A family buys a mediclaim policy and it pays $800 in a year as the premium.
Now if that family produces a bill of $1000 in that year, then the company will pay 80% of $1000 = $800 and the remaining $200 will be paid by the family itself (because as per policy in first $1000 expenses the company has to pay only 80% of the expenses).

The question is asking that at what level will the company and the family, both will pay the same amount.

Till now, the family has paid $800(premium) + $200 = $1,000 but the company has paid only $800, so if the total bill is of $1000+$200 = $1200, then the company will pay $800 + $200 = $1000 (please note that the company will pay 100%, as it is mentioned that if the medical expenses are over $1000, then the company will bear the total expenses), which is the same as that paid by the family.

Does that help?