Target will offer聽Fitbit activity trackers to 335,000 of its employees free of charge, . The program, aimed at improving fitness and lowering the cost of health insurance for its workers, is linked to Fitbit鈥檚 efforts to expand its corporate customer base. This week, Fitbit announced that it will expand its compliance with the U.S. Health Insurance Portability and Accountability Act (HIPAA) in an effort to improve the process of gathering Fitbit data for corporate health insurers, .
Data collected on Fitbit鈥檚 clip-on tracker, called a Zip, will be used to organize Target employees into teams that can compete for the highest activity level, according to Bloomberg. Prizes include a $1 million donation to a charity of the team鈥檚 choice.
Amy McDonough, director of Fitbit Wellness, the company鈥檚 corporate fitness branch,聽told Bloomberg that Appirio, a Fitbit customer, reduced its health costs by 6聽percent聽during the first year of using Fitbit鈥檚 wearables.
鈥淭he cost of a Fitbit device,鈥 James Park, CEO and co-founder of Fitbit, told Bloomberg, 鈥渋s very small compared to the savings from a healthier employee population.鈥