Medical coders are critical to health informatics and the healthcare industry. They review patient records and assign standardized codes for accuracy and insurance reimbursement. Without them, a patient’s diagnostic information may be inaccurate, and the provider may not receive proper compensation.
For those interested in supporting the healthcare industry, medical coding is a fantastic opportunity to work closely with medical professionals and improve patient care. As a medical coder, you have the responsibility to make stakeholder relationships as seamless as possible.
What is Medical Coding?
Medical coding is the process of transferring diagnoses, procedures, equipment and services into universal alphanumeric codes. These codes are used throughout the medical system by various stakeholders — such as insurance companies and doctors. Health care providers use these codes to:
- Document diagnoses and treatments.
- Connect one condition clearly to another.
- Provide medication information to staff — like nurses.
- Request reimbursement from insurance companies.
What is a Medical Coder?
A medical coder translates health information to a universal series of numbers to facilitate the smooth and accurate flow of information between stakeholders for the sake of diagnosis and billing. The job of the coder is to make sure patients are billed correctly and healthcare providers receive proper reimbursement.
As a medical coder, you will examine documents, turn the information in those documents into codes, and use those codes to generate billing for insurance companies to process. Attention to detail is critical, as inaccuracies in coding cause improper billing and denied insurance claims, which impact both patient and provider.
What Does a Medical Coder Do?
Traditionally, work as a medical coder is done in an office setting but remote options have increased over the past years. Most coders work during weekday office hours with weekends and evenings off. A small medical office may have one or two coders, while a hospital or larger medical center may have an entire team.
Medical coders are commonly responsible for:
- Recognizing the physician’s diagnosis and knowing the associated code.
- Knowing the basics of anatomy, physiology and pharmacology.
- Understanding the details of the services provided.
- Familiarity with insurance company rules and regulations.
When medical coders find anomalies — such as dual diagnoses, unreadable patient charts and other inaccurate details — they need to translate that information into the correct code. Failure to provide the correct codes will result in billing issues and potential misunderstandings if the patient sees a different provider, impacting patient care.
How Much Does a Medical Coder Make?
The median salary for a medical coder in the United States in 2022 is $44,090 per year, or $21.20 per hour. Salaries range from $28,800 per year to $73,000 per year for certified medical coders. Compensation is contingent on experience, location and education.
Medical Coding Career Outlook
The Bureau of Labor Statistics (BLS) projects a 9% job growth for medical coding between 2020 and 2030. This is slightly higher than the expected 8% average across all US industries. The expected number of job openings for medical coders per year on average is around 34,300.
Medical coders work in all types of healthcare facilities from private practitioner offices to hospitals. Since healthcare is quickly moving into the world of telehealth, medical coders may have the opportunity to work from home. In these situations, a flexible schedule may be permitted.
How to Become a Medical Coder
To become a medical coder, you need specialized certification and training. There are degrees — including master’s degrees — and certificate programs that position you to start on your new career relatively quickly. Many professionals continue to work at their current job while receiving education in medical coding.
Desirable Medical Coding Skills
A successful medical coder has soft skills, such as:
- Strong communication.
- A willingness to learn.
- An eye for detail.
- The ability to research.
- Effective multi-tasking.
- Good time management.
- Strong problem-solving.
- The ability to analyze.
- Effective collaboration.
A medical coder may also be skilled in job-specific technical skills like:
- Customer billing.
- Health information technology.
- Clinical documentation.
- CPT coding: Current Procedural Terminology codes provide a uniform language for medical professionals. This is the most widely accepted coding language.
- ICD-10: The International Classification of Diseases, Tenth Revision, Clinical Modification which is based on the International Classification of Diseases, published by the World Health Organization (WHO).
- HCPCS coding: There are two levels to this coding, with Level I using primarily CPT coding and Level II including additional coding for medical devices and equipment.
- HIPAA compliance: Compliance with the Health Insurance Portability and Accountability Act of 1996 is required for everyone in the medical profession.
Medical Coding Certification
High-quality certificate programs offer all the essential knowledge to begin your career as a medical coder. You will be provided with skills to understand the latest coding languages, HIPAA compliance and insurance billing specifics.
While a medical coding certificate does not provide the same level of education as a degree, it is designed to help you secure a job as a medical coder and move forward with your healthcare career goals.
In general, the steps to become a certified medical coder include:
- Receiving the related education of your choice.
- Preparation for the CPC Exam.
- Taking and passing the CPC Exam.
Medical Coding in the Field of Health Informatics
Medical coding is a valuable part of the growing field of health informatics (HI). Organizing and analyzing health records is a large part of HI. Medical coders may decide to expand their knowledge of healthcare and technology, affording them potential opportunities for advancement in the HI field.
For those looking to advance beyond medical coding, the Graduate Certificate in Health Informatics at USF Health can give the training and instruction needed to move into a new role while continuing in your current position. For those who wish to take their career further, an MS in Health Informatics could open additional opportunities.
With strong job growth predicted over the next decade, medical coding may be the right choice for your career goals.
*National long-term projections may not reflect local and/or short-term economic or job conditions, and do not guarantee actual job growth. Information provided is not intended to represent a complete list of hiring companies or job titles, and program options do not guarantee career or salary outcomes. Students should conduct independent research for specific employment information.
