Amgen is in Washington’s crosshairs again today. At a hearing this morning, Pete Stark, the California Democrat who chairs the House Ways and Means Health Subcommittee, says that Medicare only encourages overuse of expensive anemia meds, such as Amgen’s Epogen, which results in endangered lives and wasted money.

Stark made a point of noting that Medicare still hasn’t produced a report due in 2005 on a new fee system, which is supposed to eliminate incentives for doc to administer unnecessary dosages. “We are stewards of taxpayer dollars,” says Stark. “The current Medicare reimbursement system creates incentives for higher dosing.”

Studies have indicated that Amgen’s Epogen and similar anemia meds raise the danger of heart attacks, strokes and death when used at high doses. As Bloomberg News notes, Epogen was Medicare’s biggest drug expense in 2005, costing $2 billion, according to the Government Accountability Office, which recommended in December that payment for Epogen be part of a single “bundled” fee for dialysis to remove incentives for excess use.

Medicare proposed in May limiting coverage of Amgen and Johnson & Johnson anemia meds over concerns they may increase health risks. J&J sells Procrit, which is identical to Epogen, under a marketing agreement with Amgen. No decision has been announced by Medicare.

The drugmaker has been understandably skittish about the issue, released dosage data in its testimony this morning.

“The well-being of patients is Amgen’s top priority, as is the appropriate use of all of our products,” Joshua Ofman, Amgen’s vp of global coverage and reimbursement, said in his statement. “Based on the best available scientific evidence and utilization data, there does not appear to be a compelling policy or clinical rationale to immediately make fundamental, untested changes to the dialysis payment system.”