Castle Biosciences drops as regional Medicare contractor won’t cover test

Castle Biosciences (CSTL) shares are lower in Friday trading after Novitas, a regional Medicare contractor, finalized its decision to not cover one of Castle’s cancer tests. Novitas, a Medicare Administrative Contractor, finalized a local coverage determination with the non-coverage decision for Castle’s DecisionDx-SCC test, listing the test among a number that it judges to be “not reasonable and necessary.” The new policy goes into effect on Februray 23, according to a post to the site of the Centers for Medicare & Medicaid Services. In Friday afternoon trading, shares of Castle Biosciences are down $3.48, or 11%, to $29.24.