Medical billing and coding professionals play a vital role in the healthcare industry.
Employment of medical records’ specialists is projected to grow 7% from 2021 to 2031, adding about 15K new job openings.
If you are considering a career in this field, it is essential to have a comprehensive understanding of the earning opportunities. On average, AAPC states that medical billing and coding salary (for both certified and noncertified professionals) in 2023 is about $55,389 annually.
We will delve into the various factors that influence medical billing and coding salaries, industry trends, and provide you with a comprehensive guide to navigating this rewarding profession.
- What is the definition of medical billing and coding?
- How much does medical billing and coding pay on average?
- What state pays the most for medical billing and coding?
- What are the factors impacting medical billing and coding salary?
- Is medical billing and coding in demand in future?
Understanding Medical Billing and Coding
Before we delve into the salary aspects, let us briefly understand what the medical billing and coding job description entails.
Medical billing and coding involves translating medical diagnoses, treatments, procedures, and supplies into universal alphanumeric codes for billing purposes. These codes ensure proper reimbursement from insurance companies and government programs.
Medical coders analyze patient medical records, assigning codes to each procedure, diagnosis, and service provided. On the other hand, medical billers take these codes and submit claims to insurance companies for reimbursement.
Accuracy and attention to detail are critical in this field to avoid claim denials and ensure maximum reimbursement for healthcare providers.
Also read: How to add medical coding experience to a resume?
Average Medical Billing and Coding Salary across the United States
How much does medical billing and coding pay?
The average salary for medical billing and coding professionals can vary depending on several factors such as experience, education, certifications, geographic location, and industry setting. We will discuss that in the next section.
Medical biller and coder jobs fall under the U.S. Bureau of Labor Statistics’ category of medical records specialists. Medical records’ specialists with no college education average $26.13 per hour, while those with a university or an associate degree average $26.84 per hour, or 2.7% more.
The average annual medical billing and coding salary in 2023 in the United States is $46,660 a year.
Here’s a breakdown of the average salary for these 2 professions separately as per different job websites:
| Specialization | Glassdoor | Indeed | PayScale | Salary.com |
|---|---|---|---|---|
| Medical Coder | $38,564 | $47,695 | $47,353 | $53,421 |
| Medical Biller | $35,586 | $39,645 | $44,414 | $45,760 |
Also read: Why should you write a medical cover letter?
Medical Billing and Coding Salary by State
The table below represents the average annual pay for the medical billing and coding jobs category in 2023:
| State | Salary |
|---|---|
| Florida | $34,570 |
| Texas | $39,145 |
| California | $45,149 |
| Georgia | $29,845 |
| Ohio | $37,000 |
California has the highest level of employment for medical record technicians. Although the medical billing and coding salary offered by them is much higher than the national average, remember that California is one of the most expensive states.
Also read: What skills should a medical technologist put on a resume?
Factors Influencing Medical Billing and Coding Salaries
There are certain factors that can impact your medical billing and coding salary:
Experience and Education
As with most professions, experience and education play a significant role in determining salary levels. Medical billing and coding entry level salary can be lower ($41,843) compared to their more experienced counterparts.
As professionals gain more experience and expertise, they become eligible for higher-paying positions and advancement opportunities. Also, obtaining a relevant certification or degree in medical billing and coding can positively impact earning potential.
Certifications from reputable organizations such as the American Academy of Professional Coders (AAPC) or the American Health Information Management Association (AHIMA) demonstrate proficiency and may result in higher salaries.
Geographic Location
Geographic location is another influential factor in medical billing and coding salaries.
Salaries can vary significantly based on regional cost of living, demand for professionals, and local market conditions. Metropolitan areas and states with higher living costs generally offer higher salaries to offset the expenses.
Industry Setting
Medical coders and billers can work in various healthcare settings, including hospitals, physician offices, clinics, and insurance companies.
The industry setting can impact salary levels due to differences in job responsibilities, workloads, and organizational structures.
For example, medical coders working in hospitals may have higher earning potential compared to those in smaller clinics.
Specialization and Additional Skills
Specializing in a particular area of medical coding or billing can lead to higher earning potential.
Advanced coding certifications, such as Certified Professional Coder - Hospital (CPC-H) or Certified Professional Coder - Payer (CPC-P), demonstrate expertise in specific settings or payer guidelines, which can result in higher salaries.
Additionally, possessing additional skills such as knowledge of electronic health records (EHR) systems, data analysis, or managerial abilities can make professionals more valuable to employers and potentially lead to higher salaries.
Check out: Top medical record resume samples with free template option by Hiration
Medical Billing and Coding Salary Trends and Future Outlook
The healthcare industry is continuously evolving, and medical billing and coding are no exception. Several trends and factors are shaping the future of this profession:
- Increasing Demand for Professionals:
The demand for medical billing and coding professionals is projected to grow significantly in the coming years. Factors such as an aging population, expanding healthcare coverage, and increased reliance on electronic health records contribute to this growth. As the demand increases, professionals with the necessary skills and certifications will have a competitive advantage in salary negotiations.
- Technological Advancements:
Advancements in technology, such as artificial intelligence (AI) and machine learning, are transforming the medical billing and coding landscape. Automated coding systems and computer-assisted coding tools are becoming more prevalent, which can impact the future roles and responsibilities of medical coders and billers. Professionals who can adapt to and leverage these technological advancements may be better positioned for higher salaries and career growth.
Check out our resume samples for aspirants in the medical and healthcare fields:
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FAQs on Medical Billing and Coding Salary
Q. How much is a medical billing and coding salary?
A. The average annual medical billing and coding salary in 2023 in the United States is $46,660 a year.
Q. What is the average salary of a medical billing and coding in South Carolina?
A. The average salary for a medical billing and coding technician in South Carolina is around $38,410 per year.
Q. Does medical billing and coding pay well?
A. Medical billing and coding can pay well, depending on factors such as experience, location, and certifications.
Q. How much does medical billing and coding make an hour?
A. Medical billing and coding specialists with no college education average $26.13 per hour, while those with a university or an associate degree average $26.84 per hour.
Q. What is the starting salary for a medical billing and coding specialist?
A. The average medical billing and coding entry-level salary in the United States is $41,843.
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