NEW YORK (TheStreet) -- TheCovestor Healthcare Model predicted that the implementation of the Affordable Care Act would be good for health care stocks because Americans previously lacking health insurance would join the ranks of the insured. Contrary to some observers, who had predicted that Obamacare would be a disaster, the Covestor Healthcare Model anticipated that this would be a job-creator and a business stimulus badly needed in an economy still weak following the financial crisis of 2008.

Let's take a look at some of the companies that have benefited from Obamacare and are likely to continue to do well. The Affordable Care Act sets up prescription drug coverage and encourages generics in order to minimize costs. One of the successful holdings in the Healthcare Model is Actavis (ACT) , which recently outbid Valeant (VRX) for Allergan (AGN) . Actavis is the third largest generic pharmaceutical company in the U.S.

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One of the foundations of the broadening of health care coverage under Obamacare was the expansion of Medicaid that was initially required under the ACA. It became a voluntary decision by the states after a ruling of the Supreme Court. As of November 2014, 28 states (including the District of Columbia) have accepted federal funds for Medicaid expansion. It is estimated that 6 million people have been added to Medicaid since Obamacare was initiated. This brings Medicaid enrollment to about 65 million Americans, and work of managing these patients also creates investment opportunities for the Healthcare Model.

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Health Care Stocks That Will Continue to Benefit From Obamacare