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The penalty is capped at the national average cost of a bronze-tier health plan. The 2016 national average for a bronze-tier plan was $223 per month: $223 X 8 months = $1,784. Mary's penalty is capped at the national average cost of 8 months of bronze-tier health insurance. Since Mary's percentage-of-income penalty for 8 months, $1,077.50 is less than the 8-month cap of $1,784, the cap won't lower her penalty amount.