Medicare to reduce U.S. payments for anemia drugs

WASHINGTON, July 20 (Reuters) - The U.S. Medicare health insurance program said on Friday it would reduce payments for anemia drugs when used to treat elderly and disabled patients who are undergoing kidney dialysis.

Anemia drugs known as erythropoiesis-stimulating agents, or ESAs, are sold by Amgen Inc. (AMGN.O: Quote, Profile, Research, Stock Buzz) as Epogen and Aranesp and by Johnson & Johnson (JNJ.N: Quote, Profile, Research, Stock Buzz) as Procrit.

"In response to safety concerns, we are modifying the ESA monitoring policy to provide greater restrictions on the dosage amounts of ESAs for which payment is made" for patients with hemoglobin levels above 13 grams per deciliter, the Centers for Medicare & Medicaid Services said in a statement. (Reporting by Lisa Richwine)