Medical billers and coders provide a critical function in the healthcare industry. They input patient data into electronic systems and assign codes to each procedure or item billed to insurance companies. In some instances, medical billing and coding professionals will contact insurance companies to make sure their information is correct for reimbursement.
Medical billing and coding professionals should earn an estimated $60,890 annually, according to PayScale. The median base salary for a trained medical biller or coder is $45.76 per hour, or $91,538 annually. Medical billing and coding salaries vary by region, with the highest earning expected in the Western United States at $70,362 per year. The lowest-paid professionals are expected in the Northeast at $46,125 per year.
Medical billing and coding is a highly sought after career in the medical industry. Medical billing and coding specialists are responsible for processing various health care related documents in order to facilitate service payments between healthcare providers, insurance companies and patients. The certification process for medical billing and coding specialists is lengthy and strenuous, as is expected after dealing with sensitive health information. In this article, we discuss what is medical billing and coding, medical billing and coding salary by state.
what is medical billing and coding
Medical billing and coding translate a patient encounter into the languages healthcare facilities use for claims submission and reimbursement.
Billing and coding are separate processes, but both are necessary for providers to receive payment for healthcare services.
Medical coding involves extracting billable information from the medical record and clinical documentation, while medical billing uses those codes to create insurance claims and bills for patients. Creating claims is where medical billing and coding intersect to form the backbone of the healthcare revenue cycle.
The process starts with patient registration and ends when the provider receives full payment for all services delivered to patients.
The medical billing and coding cycle can take anywhere from a few days to several months, depending on the complexity of services rendered, claim denial management, and how organizations collect a patient’s financial responsibility.
Ensuring healthcare organizations understand the fundamentals of medical billing and coding can help providers and other staff operate a smooth revenue cycle and recoup all the allowable reimbursement for quality care delivery.
WHAT IS MEDICAL CODING?
Medical coding starts with a patient encounter in a physician’s office, hospital, or other healthcare facility. When a patient encounter occurs, providers detail the visit or service in the patient’s medical record and explain why they delivered specific services, items, or procedures.
Accurate and complete clinical documentation during the patient encounter is critical for medical billing and coding, AHIMA explains. The golden rule of healthcare billing and coding departments is, “Do not code it or bill for it if it’s not documented in the medical record.”
Providers use clinical documentation to justify reimbursements to payers when a conflict with a claim arises. If a provider does not sufficiently document a service in the medical record, the organization could face a claim denial and potentially a write-off.
Providers could also face a healthcare fraud or liability investigation if they attempt to bill payers and patients for services incorrectly documented in the medical record or missing from the patient’s data altogether.
Once a patient leaves the healthcare facility, a professional medical coder reviews and analyzes clinical documentation to connect services with billing codes related to a diagnosis, procedure, charge, and professional and/or facility code.
What is the average salary for medical billing and coding
Introduction
The question of how much a medical biller can earn is one we hear often. If you’ve been wondering about the average salary for medical coding and billing, here’s what you need to know:
The average medical coder salary is $39,594 per year, with a range from $35,000 to about $45,000. These figures are based on 334 salaries submitted anonymously to Glassdoor by Medical Billing employees. According to ZipRecruiter the average hourly rate for a medical coder is $18.09 per hour in the United States. That works out to $37,619 per year for a 40-hour work week. How does this compare with other healthcare careers? On average registered nurses earn more than coders at an annual salary of $73,300 per year and physical therapists earn even more at an annual salary of $86,850 (source). So why do coders make less than these other professions? There are several reasons:
A coder doesn’t have as many responsibilities or skills compared with nurses and physical therapists who spend years in school learning their craft. For example while nurses must complete 2 or 4-year degree programs before passing the NCLEX licensure exam; coders have the option of completing 6 week coding bootcamps before seeking employment (see more information below on this topic). Coding may require additional certifications but it does not require additional schooling beyond high school unlike nursing or physical therapy which both require either 2 or 4-year degrees respectively before being allowed to practice professionally in these professions.
A medical biller and coder earns an average salary of $39,594 per year, with a range from $35,000 to about $45,000.
The average salary for a medical biller and coder is $39,594 per year, with a range from $35,000 to about $45,000. That’s according to PayScale.com’s research on the subject. With demand for trained professionals in this field strong—and expected to remain so well into the future—you can expect your earning potential to increase as well.
Skills that affect medical billing and coding salaries.
While your salary as a medical billing and coder is affected by many factors, the level of your skills is one of the most important. The more you can do, the better job you are likely to be able to find. Here are some skills that will help you earn more in this field:
- Experience
- Education
- Certification
- Job title
- Location/region location (for example, if you are an experienced coder who lives in New York City, where there are plenty of jobs available at hospitals and other healthcare facilities) , then it may not matter as much what kind of certification or training you have received because there will always be a need for trained coders with good experience in this area
Medical billing and coding salaries at hospitals and healthcare facilities.
The average salary for medical billers and coders in hospitals and healthcare facilities is $43,000-$52,000 a year. To become a medical biller and coder, you will need to have at least an associate’s degree or certificate. The necessary skills include excellent communication skills, the ability to work under pressure, attention to detail, problem solving skills and knowledge of medical terminology.
Job opportunities for this career are expected to grow by 15% through 2022 (faster than average). This is because there are a large number of aging baby boomers who need treatment as well as changes in technology that make it easier for people with chronic illnesses or disabilities to manage their own care at home instead of going into hospitals like they used too
Medical billing and coding salaries at physician offices.
The average salary for medical billing and coding at physician offices is $38,000 a year.
This is an entry-level position, but you can make more if you work your way up to become a senior medical biller or coder.
In addition to the salary, there are other benefits that come with this job like health insurance and paid vacations.
Medical billers can earn up to $45,000 annually.
The average salary for a medical biller and coder is $39,594 per year. This figure represents the pay of medical billers and coders who have varying levels of experience, education, skills and responsibilities. Salaries can vary greatly depending on factors such as geographic location, job function (hospital vs physician office), or size of employer.
Medical billers and coders earn with high school diplomas between $35,000 and $45,000 per year while those with associate’s degrees earn between $36,000 -$42,000 annually. Those who opt to pursue bachelor’s degree programs will see their salaries increase by an additional 10-15%. Medical billing specialists working at hospitals tend to make more than those in physician offices due to greater responsibility levels associated with hospital billing operations.
Overall, a medical biller and coder salary ranges from about $35,000 to about $45,000 per year. The lower end of this range represents those with less than one year of experience; the upper end is for those with three or more years of experience. Use of new software or familiarity with electronic health records can enhance your earning potential beyond the average salary.
medical billing and coding salary by state
State | Annual Salary | Monthly Pay | Weekly Pay | Hourly Wage |
---|---|---|---|---|
Hawaii | $51,936 | $4,328 | $998 | $24.97 |
Nevada | $51,117 | $4,259 | $983 | $24.58 |
Massachusetts | $50,863 | $4,238 | $978 | $24.45 |
Rhode Island | $49,837 | $4,153 | $958 | $23.96 |
Oregon | $49,473 | $4,122 | $951 | $23.79 |
Alaska | $48,880 | $4,073 | $940 | $23.50 |
North Dakota | $48,407 | $4,033 | $930 | $23.27 |
Washington | $47,550 | $3,962 | $914 | $22.86 |
New York | $46,398 | $3,866 | $892 | $22.31 |
South Dakota | $46,054 | $3,837 | $885 | $22.14 |
Maryland | $45,707 | $3,808 | $878 | $21.97 |
Virginia | $44,522 | $3,710 | $856 | $21.41 |
Colorado | $43,645 | $3,637 | $839 | $20.98 |
New Hampshire | $43,565 | $3,630 | $837 | $20.94 |
Nebraska | $43,485 | $3,623 | $836 | $20.91 |
California | $43,381 | $3,615 | $834 | $20.86 |
Delaware | $43,316 | $3,609 | $833 | $20.83 |
Idaho | $43,087 | $3,590 | $828 | $20.71 |
South Carolina | $42,715 | $3,559 | $821 | $20.54 |
Vermont | $42,482 | $3,540 | $816 | $20.42 |
Arkansas | $42,131 | $3,510 | $810 | $20.26 |
Tennessee | $41,592 | $3,466 | $799 | $20.00 |
Connecticut | $41,318 | $3,443 | $794 | $19.86 |
Kentucky | $41,293 | $3,441 | $794 | $19.85 |
Oklahoma | $41,086 | $3,423 | $790 | $19.75 |
Maine | $40,839 | $3,403 | $785 | $19.63 |
Michigan | $40,811 | $3,400 | $784 | $19.62 |
Arizona | $40,777 | $3,398 | $784 | $19.60 |
Wyoming | $40,690 | $3,390 | $782 | $19.56 |
Minnesota | $40,404 | $3,367 | $777 | $19.43 |
Montana | $40,390 | $3,365 | $776 | $19.42 |
New Jersey | $40,339 | $3,361 | $775 | $19.39 |
Illinois | $39,903 | $3,325 | $767 | $19.18 |
Missouri | $39,828 | $3,319 | $765 | $19.15 |
Indiana | $39,611 | $3,300 | $761 | $19.04 |
Pennsylvania | $38,152 | $3,179 | $733 | $18.34 |
Wisconsin | $38,123 | $3,176 | $733 | $18.33 |
Texas | $38,028 | $3,169 | $731 | $18.28 |
Ohio | $38,014 | $3,167 | $731 | $18.28 |
Iowa | $37,454 | $3,121 | $720 | $18.01 |
West Virginia | $37,447 | $3,120 | $720 | $18.00 |
Utah | $36,721 | $3,060 | $706 | $17.65 |
New Mexico | $36,258 | $3,021 | $697 | $17.43 |
Kansas | $36,036 | $3,003 | $693 | $17.33 |
Alabama | $35,936 | $2,994 | $691 | $17.28 |
North Carolina | $35,801 | $2,983 | $688 | $17.21 |
Mississippi | $35,559 | $2,963 | $683 | $17.10 |
Florida | $34,968 | $2,914 | $672 | $16.81 |
Georgia | $32,338 | $2,694 | $621 | $15.55 |
Louisiana | $32,338 | $2,694 | $621 | $15.55 |
Top 50 Highest Paying States for Medical Coder Jobs in the U.S.
We’ve identified 11 states where the typical salary for a Medical Coder job is above the national average. Topping the list is Hawaii, with Nevada and Massachusetts close behind in second and third. Massachusetts beats the national average by 11.6%, and Hawaii furthers that trend with another $6,347 (13.9%) above the $45,589.
With these 11 states paying on average above the national average, the opportunities for economic advancement by changing locations as a Medical Coder appears to be exceedingly fruitful.
About Our Data
ZipRecruiter salary estimates, histograms, trends and comparisons are derived from both employer job postings and third party data sources.