Veracyte Announces Final Medicare Coverage Policies for Percepta® Bronchial Genomic Classifier

By a News Reporter-Staff News Editor at Insurance Weekly News -- - HYPERLINK "http://www.veracyte.com/" nVeracyte, Inc. (NASDAQ: VCYT), a genomic diagnostics company focused on reducing unnecessary surgeries and healthcare costs by resolving diagnostic uncertainty, announced that Palmetto GBA, a Medicare Administrative Contractor (MAC), has finalized its coverage policy for the Percepta Bronchial Genomic Classifier. This local coverage determination (LCD) makes Percepta the first genomic test to be covered by Medicare for improved lung cancer screening and diagnosis. Developed through the Medicare MolDx program, the policy will become effective March 13, 2017 and provides a framework for other participating MACs to follow.

CGS Administrators, LLC also issued a final LCD for the Percepta genomic test and Noridian Healthcare Solutions is expected to similarly finalize its draft LCD. These finalizations will make Percepta a covered benefit for more than 35 million, or nearly two thirds, of the 57 million Medicare beneficiaries in the United States.

The Percepta classifier is a genomic test that is used to improve the accuracy and safety of lung cancer screening and diagnosis. The test is supported by multiple published studies demonstrating its ability to reduce unnecessary surgeries on suspicious lung nodules found on computed tomography (CT) scans - a traditional challenge in lung cancer screening.

"Palmetto continues to be a leader in acknowledging the tremendous advances in patient care and healthcare savings that are enabled by access to Veracyte's high-value genomic tests," said Bonnie Anderson, Veracyte's chairman of the board, president and chief executive officer. "The significant clinical evidence supporting Percepta met the MolDx program's high standards for coverage and, we believe, will also be key to gaining private insurance coverage and driving the test's adoption as we begin to ramp up commercialization."

Lung cancer kills nearly 160,000 Americans each year - more than the next three leading cancers combined. In 2015, more than eight million Americans became eligible through Medicare and private insurers for annual lung cancer screening with low-dose CT in an effort to find cancers earlier, when they are more treatable.

Veracyte estimates the U.S. market opportunity for Percepta to be $425 million to $525 million today and expects the market to increase in size as lung cancer screening programs expand. Approximately 50 percent of the current market comprises patients covered by Medicare.

Keywords for this news article include: Genetics, Medicare, Oncology, Veracyte, Lung Cancer, Health Policy, Lung Neoplasms, Diagnostics and Screening.

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