OBJECTIVES: To assess the cost-effectiveness of 3M™ CobanTM2 Layer Compression System (Coban 2) for the treatment of lymphoedema in the Dutch healthcare setting.  METHODS: The health economic evaluation consists of a cost-effectiveness analysis. A decision tree model was developed in order to determine the cost-effectiveness of Coban 2. The entry point of the model consists of patients with lymphoedema requiring treatment with compression bandages. The treatment with Coban 2 is compared with traditional treatment (Short Stretch Bandages). The primary perspective of the study is that of the Dutch insurer in 2012. The actual costs, which are included in the study, are product costs and treatment costs.  RESULTS: The use of Coban 2 leads to a mean total cost of € 528 compared to € 630 for traditional care, which leads to a cost saving of € 102 per patient. The effectiveness for Coban 2 is higher because of a shorter treatment period, which leads to a reduction of the negative impact on Quality of life by lymphoedema.  CONCLUSIONS: The use of Coban 2 versus traditional treatment is cost saving for each treatment period with a higher effectiveness, due to shorter treatment duration and improvement in Quality of Life. As a consequence the use of Coban 2 leads to a positive impact on the total health care budget.