OBJECTIVES:  CHC is associated with significant economic burden. This study evaluated the healthcare cost alleviation associated with treatment of CHC. METHODS: Health insurance claims from 60 self-insured U.S companies 01/2001-03/2012 were analyzed. Adult patients with ≥1 diagnosis claim of CHC (ICD-9-CM: 070.44, 070.54), newly initiated on interferon with ≥2 dispensings, and with more than 48 weeks of follow-up were selected. Patients diagnosed with HIV or who completed only 24 weeks of interferon therapy (a surrogate for CHC genotypes 2 and 3) were excluded from the study. Interferon users were categorized into complete and discontinued therapy cohorts according to their adherence to therapy during the first 36 to 48 weeks of treatment. During the post 48 week period, complete and discontinued therapy cohorts were compared for healthcare resource utilization using rate ratios (RRs), as well as all-cause and CHC-related healthcare costs using per patient per year (PPPY) cost differences. Confidence intervals (CI) and p-values for cost differences were calculated using a nonparametric bootstrap. RESULTS: A total of 1017 patients with complete and 953 patients with discontinued interferon therapy  were identified. For the complete and discontinued therapy cohorts, respectively, mean age was 49.6 and 50.4 years; 38% were female in both cohorts. Relative to the discontinued therapy cohort, the complete therapy cohort had significantly fewer hospitalizations (RR [95% CI]: 0.74 [0.68;0.81], P<.001) and outpatient visits (RR [95% CI]: 0.92 [0.91;0.93], P<.001), which translated into significantly lower total healthcare costs PPPY (cost difference [95% CI]: -$4,540 [-7,680; -1,570], P=0.004). The majority, 61%, of the all-cause cost differences between cohorts was not related to CHC. CONCLUSIONS: CHC patients who have completed an interferon therapy and presumably have higher rate of achieving SVR have lower costs post therapy. Interestingly, both non-CHC and CHC-related costs were found to be reduced.