OBJECTIVES: Improvement in glycaemic control associated with Continuous Glucose Monitoring (CGM) use leads to a reduction of costly diabetes-related complications. Our aim was to estimate the health economics benefits of CGM compared to Self-Monitoring of Blood Glucose (SMBG) in type 1 diabetes (T1DM) in the Swedish setting. METHODS: The Core Diabetes Model (CDM) is an internet-based, highly validated, computer-simulation model to determine the long-term health outcomes and economic consequences of diabetes interventions. This model was used to evaluate the cost-effectiveness of CGM versus SMBG in T1DM over a lifetime horizon. Results from a recently published meta-analysis comparing CGM versus SMBG and a real life observational Swedish study were used. The meta-analysis showed that for a cohort of T1DM with average baseline HbA1c of 8.1%, mean baseline age of 27 years and diabetes duration of 13 years, everyday use of CGM led to HbA1c reduction of -0.76% versus -0.13%, for CGM and SMBG respectively. The observational study demonstrated a reduction from 7.11 to 4.35 daily blood glucose tests when using CGM compared to SMBG only. RESULTS: The Incremental-Cost-Effectiveness-Ratio (ICER) for CGM vs. SMBG only was 369,253SEK (41,940€) per Quality-Adjusted-Life-Year gained (QALYg), based on combined direct and indirect costs. Undiscounted life expectancy was improved by 1.5 years. The improvement in discounted QALY was 0.62 in favour of CGM. CGM related costs were partially offset by the savings due to the reduction in long-term complications. CGM usage compared to SMBG increased the mean time alive free from complications. Sensitivity analysis has been conducted. CONCLUSIONS: Our analysis showed that CGM is very cost-effective compared to SMBG over a lifetime horizon in T1DM patients in the Swedish setting and can lead to an increase in life expectancy.