OBJECTIVES: To investigate the economic benefits of a 1% reduction in HbA1c in comparison with baseline levels in patients with type 2 diabetes in Algeria enrolled in the A1cheive study. METHODS: The CORE Diabetes Model was used to make long-term projections of clinical and cost outcomes associated with a 1% HbA1c reduction based on A1chieve, a global, prospective, observational study of basal, mealtime and biphasic insulin analogs in routine clinical practice. At baseline, mean (SD) patient age was 60 (10) years, duration of diabetes 12 (5) years and HbA1c 9.2 (1.8)%. HbA1c was reduced by 1%-point from baseline in the active group relative to the control group. Life expectancy, complication rates and the cost of complications were projected of a 35-year time horizon. Future costs and clinical outcomes were discounted at 3% annually. Costs are presented in 2011 Algerian Dinar (DZD), converted to Euros (EUR) at an exchange rate of DZD 1:EUR 0.096. RESULTS: A 1% reduction in HbA1c was associated with improvements in both clinical and economic outcomes. Undiscounted life expectancy was improved by 0.17 year with a 1% improvement in HbA1c (6.58 versus 6.40 years). The cumulative incidence of all diabetes related complications included in the analysis was lower in the 1% HbA1c reduction group. Complication costs were DZD 9,669 (EUR 93) lower following HbA1c reduction (DZD 387,236 [EUR 3,717] versus DZD 396,905 [EUR 3810]). The most pronounced difference was in the cost of renal complications. CONCLUSIONS: Glycemic control in A1chieve patients was generally suboptimal in the Algerian setting. Improvements in glycemic control are likely to lead to substantial clinical and economic benefits due to reduced complication rates. Consequently, the cost-effectiveness of intensifying treatment in these patients is worthy of further analysis.