Community Health Systems (CYH), Novartis AG (ADR) (NVS): 7 Things You Need to Know About Obamacare Before 2014

7. There are plenty of investing opportunities linked with health reform.
The Motley Fool is always looking for an investing angle — and there are plenty with implementation of Obamacare. For example, many observers expect hospitals will benefit as millions of uninsured individuals gain health insurance through Obamacare exchanges.

Community Health Systems (NYSE:CYH) is one possible hospital stock for investors to consider. The average analysts’ one-year target price for the stock represents a hefty increase over the current share price. Community Health Systems (NYSE:CYH) announced plans in July to acquire Health Management Associates to better position itself to take advantage of opportunities presented by health reform.

One change with Obamacare that many Americans might not be as familiar with is the establishment of a pathway for generic versions of biologic drugs, called biosimilars, to gain approval. Novartis AG (ADR) (NYSE:NVS) looks to be a good alternative from benefiting from a coming wave of biosimilars. The company’s Sandoz unit, a leader in the generic drug market, has stated that it expects the overall biosimilar market to soar to more than $20 billion by 2020. Sandoz hopes to claim a nice share of the coming boom.

Another possible investing play is in temporary staffing agencies. Yes — there’s plenty of disagreement about how much Obamacare is really causing companies to use temporary workers. However, temp agency Robert Half International Inc. (NYSE:RHI) reported significant interest in its services from organizations ostensibly looking to circumvent the 50-employee threshold for providing health insurance mandated by Obamacare. The employer penalties have been pushed back a year, but Robert Half and its peers could benefit as the Jan. 1, 2015 effective date draws closer.

Key parts of Obamacare are on the way soon. There’s plenty you need to know, but there’s plenty of opportunity as well.

The article 7 Things You Need to Know About Obamacare Before 2014 originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Robert Half International.

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