I had nearly the exact same problem with a Martin/Sigma acoustic guitar. I got the guitar for a great price at a fundraiser auction thinking it might be nice as a 'beater' guitar or one for my kids to learn on. Unfortunately, the action was so high that it was unplayable for anyone without extremely strong hands.
I took it to a local luthier who also offers repair services. I had them install a new bone saddle, perform a setup (which sets the action, intonation, etc), and install new strings.
Quite honestly, the results are stunning. The action is low and smooth -- yet without any hint of fret buzz, the intonation is perfect, and the bone saddle dramatically improved the sound. It is like having a new guitar. In fact, it has gone from collecting dust to being one that I use fairly frequently.
The whole bill for this work was around $75 (before tax) and was money well spent, in my opinion.