From the Charleston, S.C. Post and Courier — Originally published Monday, May 18

President Obama hailed the health industry’s announcement that it will reduce costs by $2 trillion over the next decade. But the enormity of the nation’s health-care problem was underlined when Mr. Obama noted that this huge savings, if realized, would cut those costs by a mere 1.5 percent a year.

The health industry hopes that those reductions can hold new government intervention at arm’s length. But costs still will rise. …

Mr. Obama thinks giving government a larger role is the right way to further reduce costs. But government already has a very big voice in deciding how the nation’s health-care system is run. …

Between government programs and employer plans, most Americans have limited discretion in how their health-care dollars are spent. They are the third wheel in the system.

Government has not exercised its influence wisely. …

Mr. Obama’s proposed new government insurance program for working Americans would increase the scope for politically determined price-setting. That is the wrong way to solve the nation’s health-care cost crisis.

… The most important health-industry reform issue is how to encourage greater efficiency and value for consumers.

The best evidence suggests it should be through market-based decisions …