PURPOSE: Genital herpes management has concentrated on episodic treatment or prophylaxis of recurrences. However, significant morbidity arises from stigma surrounding the diagnosis. We investigated the effect of including treatment of disease stigma on the cost-effectiveness of genital herpes treatment. METHODS: Using a Markov decision model, we estimated the incremental cost-effectiveness of four strategies for genital herpes management: no intervention, counseling only, chronic antiviral suppression only, or both counseling and suppression. All strategies used antivirals for symptomatic recurrences. The Markov cycle length was 1 week with a 10 year time horizon. A societal perspective was taken, with costs and benefits discounted at 3%/yr. We used literature and expert estimates of parameter values, and assumed that counseling decreases disutility from stigma but has no effect on symptomatic recurrences, while chronic antiviral suppression decreases both. The disutility of stigma was estimated at 0.05 (for a utility of 0.95 on a scale where 0 = death & 1 = perfect health), and the disutility of a symptomatic recurrence was 0.10 (a utility of 0.90). Multiple sensitivity analyses were performed. RESULTS: In the baseline analysis, the incremental cost-effectiveness of counseling only compared to no intervention is $2570 per quality adjusted life year (QALY) gained. Antiviral suppression without counseling is weakly dominated by counseling plus suppressive therapy, which costs $68,500/QALY gained compared to counseling only. Results are not sensitive to variation of counseling costs (baseline $500, range $200–1000), symptomatic recurrence treatment costs (baseline $24.50, range $0–100), recurrence frequency while on suppressive therapy (baseline 1/yr, range 0–6/yr), or time horizon (1–10 years). Counseling plus antiviral suppression costs less than $50,000/QALY when: suppression costs less than $19.74/wk (baseline $26.32/wk), recurrences without suppression are more frequent than 11.5/yr (baseline 6/yr), stigma utility is less than 0.92, recurrence utility is less than 0.82, counseling decreases stigma by less than 17% (baseline 50%), or antiviral suppression decreases stigma by more than 77% (baseline 50%). CONCLUSION: Although suppressive therapy is being aggressively marketed for genital herpes, this analysis suggests that counseling to reduce stigma is more cost-effective than antiviral suppression unless genital herpes is very severe, suppression is less expensive, or herpes recurrence utilities are relatively low. These results suggest a need for more definitive determination of utilities for recurrent genital herpes and a basic understanding of the determinants and modifying factors of genital herpes stigma.