Wells Fargo & Co (WFC), Baxter International Inc. (BAX): Obamacare-Inspired Investment Opportunities

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The accounts allow individuals to deposit pre-tax money for future medical expenses. Banks profit from the deposits in the interim.

Obamacare is likely to increase the number of people with high-deductible insurance, especially relatively healthy individuals who don’t need low co-pays because they rarely go to the doctor. The HSAs help deaden the blow from potential high out-of-pocket expenses.

It might be a bit of a stretch to consider Wells Fargo & Co (NYSE:WFC) an investment opportunity based solely on its potential to increase HSA accounts; other aspects of its banking business are likely to have a greater influence on the stock price than the amount of HSA accounts it has. But the HSAs can bring in new customers, allowing Wells Fargo & Co (NYSE:WFC) to cross-sell its other products to the new customer. Come for an HSA, stay for a home loan.

The article 3 Obamacare-Inspired Investment Opportunities originally appeared on Fool.com is written by Brian Orelli.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool recommends BioMarin Pharmaceutical, Momenta Pharmaceuticals, and Wells Fargo. The Motley Fool owns shares of Momenta Pharmaceuticals and Wells Fargo.

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