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Insurer's Incentive: Get Fit, Get Paid a Buck a Day

A new health insurance company is hoping the Misfit will turn out to be a great fit for its business, and get customers a bit healthier in the process.

A new health insurance company is hoping the Misfit will turn out to be a great fit for its business, and get customers a bit healthier in the process. New York-based insurer Oscar launched on Monday an incentive program that offers its customers a free Misfit wearable fitness tracking device, and up to $20 per month if those people hit certain goals based on the number of walking or running steps they take in one day. "It's a big carrot hanging in front of you," Oscar's co-founder Mario Schlosser told CNBC.com. "The original motivation was certainly that we want to give people a nudge to stay healthy." As many as 20,000 Oscar customers will be offered the chance to download a Misfit app onto their smartphones that will monitor the device. After the Oscar-branded wristband is shipped and activated by the customer, it then automatically syncs to the app and the customer's insurance plan account. Customers are awarded $1 per day — with a $20 monthly cap — if they beat benchmarks determined by an algorithm. The award is loaded on an Amazon.com gift card.

IN-DEPTH

--- Dan Mangan, CNBC