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Genomic Health Inc. said Friday that Medicare will cover its Oncotype DX colon cancer test, which is designed to predict the risk patients will have a recurrence of the disease.

The company said Palmetto GBA, a Medicare administrator based in South Carolina, is covering the test for both men and women with stage II colon cancer. Palmetto's decision was posted on its website Thursday, but is effective for claims made on or after Sept. 18.

Shares of Genomic Health, which also makes an Oncotype DX test that is used in breast cancer, jumped $2.30, or 10.2 percent, to close at $21.98.

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