Apple Watch devices with a rock-bottom $25 price tag are being awarded to employees of three companies who meet fitness goals. A health services firm is launching the program this year at companies to encourage workers to stay healthy by highlighting the health tracking features of the Apple wrist wearable, and save companies money on insurance premiums.

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The health services firm Vitality Group is rolling out the program during this year. It will be available to the companies Amgen, DaVita Health Care Partners, and insurance company Lockton, according to VentureBeat.

Later this year more companies will be added to the program. They include John Hancock Financial. Besides offering a discounted smart watch, employees can also enjoy price cuts on premiums when they meet activity goals.  

 An Apple Watch usually costs at least $350, so the $25 price is a price slash of at least 93 percent. The new program will help companies have healthier workers.

However, there is a catch. Employees must meet health goals during a two-year period, and if they are unable to do that they must reimburse the company for the full price of the smartwatch, according to The Wall Street Journal

Fitbit is also offering its fitness trackers in a similar program. It is unclear if Apple is officially teaming up with Vitality Group for the program but it is certainly a way the company can find new customers.

The Affordable Care Act has helped to fuel a growing trend in which companies offer employees big rewards for improving their health. Obamacare tries to help companies by preventing very expensive health insurance that increases health care costs.

In other Apple Watch news the second version of the smartwatch was originally expected to launch this year at the company's March event. However, it now expected iPhone SE and iPad Air 3 will be featured at the yearly extravaganza.

It seems more likely that Apple Watch 2 will be launched with iOS 10 at Apple's WWDC 2016 event, or in September with the iPhone 7/7 Plus.    

However, Watch supplier Quanta will reportedly start production in Q2 2016. That would imply a launch before the iPhone 7 rollout in September.

Here are some Apple Watch 2 rumors: