How does the prompt payment discount work for suppliers?

Who is this for?

Learn how the prompt payment discount works

If you're a supplier and you offer a prompt payment discount to Blue Cross Blue Shield of Michigan or Blue Care Network, this will tell you how to figure out the payment schedule and discount.

Let’s say your payment terms are 2/10 net 30. You send us an invoice for $200. If we pay your invoice within ten days of receiving it, we’ll only pay $196. That’s a discount of $4 or 2%. If we pay it after ten days, we’ll pay the full $200.

You can find the payment terms for the prompt payment discount on your purchase orders. You can also find them in your master agreement.