U.S. lawmakers examine Medicare anemia drug payments

By Lisa Richwine

WASHINGTON, June 26 (Reuters) - Medicare needs to change the way it pays for anemia drugs to discourage excessive use in kidney dialysis patients, a key U.S. lawmaker said on Tuesday.

The federal health insurance program for the elderly and disabled spends about $2 billion annually on Amgen Inc.'s (AMGN.O: Quote, Profile, Research, Stock Buzz) Epogen, part of a class of anti-anemia drugs called erythropoiesis-stimulating agents (ESAs).

Critics say current payment methods have promoted aggressive treatment. Concern grew when recent studies showed high doses could lead to heart complications or death.

"Medicare can be a better purchaser of care for dialysis beneficiaries, and can do so in a way that ensures more efficient use of ESAs and better health outcomes for beneficiaries," said Rep. Pete Stark, a California Democrat who chairs the House of Representatives Ways and Means health subcommittee.

Some experts advocate "bundling" payments for the drugs with the payments for kidney dialysis services, which they say would encourage doctors to use only as much drug as needed.

"Bundled payments would encourage more efficient use of ESAs," Stark said at a subcommittee hearing.

Patients with kidney failure need regular dialysis to help clear their blood of waste. Anemia, a shortage of red blood cells, is a common side effect of the disease and can cause fatigue and headaches.

Some lawmakers worried new payment policies could lead to some patients getting too little of the anemia-fighting drugs.