OBJECTIVES: International best-practice guidelines for self-monitoring of blood glucose recommend testing for patients on basal insulin be limited to twice daily, with periodic testing for patients on oral glucose lowering therapies including insulin secretagogues and insulin sensitisers. The aim of this study is to estimate the potential cost savings if frequency of self-monitoring of blood glucose in patients with Type 2 diabetes in Ireland is rationalised according to these guidelines. METHODS: Data were analysed using 1) a national prescription claims database for 2011 (dispensed data), and 2) a survey conducted on 604 Type 2 diabetes patients in 2011 (self-reported data). Patients receiving prescriptions for diabetes were identified and total ingredient cost and quantity of test strips dispensed were calculated. Drugs and diagnostic test strips were classified and identified according to the WHO ATC classification system.  Frequency of testing for various treatment strategies was obtained. Analysis was performed in SAS (v9.1) RESULTS: The total ingredient cost of test strips was €24.5m (dispensed data) and €118,625.47 (self-reported data) in 2011.  The average frequency of testing for patients on oral agents was 3 times daily (both insulin secretagogues and sensitisers) (dispensed data) compared to once daily (self-reported data).  CONCLUSIONS: Results from this study indicate cost savings of approximately €10.4m per annum should frequency of blood glucose monitoring be restricted to patients on insulin containing regimens alone. The results also highlight a difference in frequency of blood glucose monitoring between dispensed data and self-reported data, indicating the wastage that currently exists in the system.