A congressional hearing next week into the proposed 39 percent rate increase in California by health insurance giant WellPoint could breathe new life into health care reform efforts on Capitol Hill, especially if lawmakers broaden their investigation into the outrageous rate increases other insurers are also demanding from coast to coast.

WellPoint found itself in Congressional investigators' crosshairs after the California Department of Insurance challenged the company's planned increase in the rates it charges its customers who cannot get coverage through the workplace, but have to go it alone in what is called the individual market.

This is a special alert about breaking news showing that health insurance companies secretly gave the Chamber of Commerce millions of dollars to run third-party attack ads at the same time they were telling Congress they continued to "strongly support reform." On the one hand, we're not surprised, but on the other hand, we're outraged by the lies and deception that have been documented.

The new story in the National Journal proves what I have been talking about, since I switched from being a spokesman for the health insurance industry to being a vocal critic of it. The industry is laundering millions of dollars through third parties to influence health care reform legislation and kill provisions that might hinder insurers' profits.

The revelations are so significant that Congress should launch an immediate investigation and hold public hearings before the House and Senate schedule final votes on health care reform. Please sign our petition demanding an investigation now.

There was a time, in the early 1990s, when health insurance companies devoted more than 95 cents out of every premium dollar to paying doctors and hospitals for taking care of their members. No more.

Here's an article I recently published in a special issue of The Regulator (the full issue focused on the health care debate is attached below):

The current economic crisis teaches insurance regulators several key lessons to prevent a wholesale health care meltdown in America. Much like the financial sector, the health insurance sector has made short-term gains its priority rather than the health and well-being of its customers.

If you had any doubt about who some Senators on the Senate Finance Committee really, truly care about, consider their recent votes. Just look at the votes against creating a public option to compete against private insurers. Then, consider the giddy response of the industry, according to an article in the trade press:

“We are pleased by the rejection of both the Rockefeller and the Schumer amendments containing public plan options,” says Tom Currey, president of the National Association of Insurance and Financial Advisors, Falls Church, Va.... America’s Health Insurance Plans, Washington, is also welcoming committee rejection of the amendments. “The government-run plan is a roadblock to reform,” AHIP spokesman Robert Zirkelbach says.... "[W]e are very pleased with this outcome,” says Janet Trautwein, president of the National Association of Health Underwriters, Arlington, Va.