Articles > Healthcare聽>聽What is medical billing and coding?
Written by Michael Feder
Reviewed by聽Mark J贸hannsson, DHSc, MPH,聽Dean, College of Health Professions
What are those mysterious numbers listed on an invoice from a physician or hospital? Known as medical codes, these numbers play an important role outside of the doctor鈥檚 office. Understanding what they are and how they work is the first step toward a career in medical billing and coding.
The phrase "medical billing and coding" refers to a system in which medical office personnel enter information into patient records to ensure proper billing.
It's a way to consistently treat, document and submit for payment a range of different medical issues or conditions. Accuracy is vital to ensure that the patient is treated and billed properly.
Correct medical billing and coding is essential to:
The field requires skill and accuracy as patient records are both sensitive and vital for treatment and billing.
To pursue this career, students need to understand procedures and rules, relevant federal laws and regulations such as HIPAA and, of course, those unique codes.听
Healthcare providers use specific codes and terminology that may be unfamiliar to most patients. Codes are kind of like abbreviations 鈥 they serve as easier-to-remember terms. For example, everyone has heard the abbreviation "GPS," but not everyone knows it stands for "Global Positioning System."
Medical codes are kind of like that, and they typically fall into one of two categories:
Diagnostic codes are related to specific issues or symptoms the patient reports to medical personnel at intake and/or during an examination. These intake points can be with doctors, nurses or admitting or clinical staff.
Diagnostic codes include a range of possibilities, from the common cold to rare, complex cancers.
After diagnosis, medical providers will often begin treatment. "Medical diagnosis is focused on the issue the patient has," explains Steiness.听"Treatment codes are focused on the treatment(s) that the providers used to assist the patient.听One diagnosis may lead to multiple treatments."
As that treatment evolves, the diagnostic codes in the accompanying patient file will be updated or changed depending on the health issue, corresponding treatment or even discharge.
Codes are not only for the internal medical staff to read and follow but also for the healthcare industry at large. Medical coding is a vital language used to communicate between healthcare providers (or medical offices) and a patient鈥檚 insurance company.
These codes speed things up for everyone who is reviewing paperwork and authorizing procedures or payments. Medical codes also help reduce mistakes in payment processing, billing and even diagnosis and treatment.
Coders who work in the medical billing and coding field often come across various code聽types, each with its own unique abbreviation.
Here鈥檚 an explanation of what each type of coding term stands for:
Bundling helps healthcare providers who are caring for a patient with multiple diagnoses or other health-related issues at the same time. This might be an injury to two areas of the body or an illness that has spread and is affecting multiple organs. It keeps everything simple, contained and related, and reduces the number of codes other personnel must notice and pay attention to. (And that, of course, potentially reduces the likelihood of medical errors.)
COBs can also be complex. They are there to help determine which insurance plan has the primary payment responsibility and the extent to which the other plans will contribute,聽.
A medical biller or coder will typically have the crucial responsibility of going through a patient鈥檚 medical file after an appointment and determining, based on the services provided to the patient (consultation, tests, treatments, etc.), which of those services to bill an insurance company and/or the patient and which universally accepted "codes" to use to notify those companies to explain what work was done and needs to be paid for.
Without a good medical coder, a hospital, doctor鈥檚 office or other medical institution may end up overbilling an insurance company or underbilling and not getting the medical provider properly reimbursed and thus lose money.
While medical coders may fall under a company鈥檚 "billing" department, they are not necessarily medical聽billers. That job is for the person who processes the insurance claims聽and follows up on them. They do not determine what codes are used in the insurance billing.
Nonetheless, a medical coder may also take on the responsibilities of a medical biller if that person is trained in both roles.
A medical coder might have any of the following job titles:
A medical coder has similar work responsibilities wherever they work. Medical coders can also choose to get certification in specific concentrations. There aresome standard certifications, along with several medical coder certification organizations.
Like any good team, the terms "medical billing and coding" are rarely seen apart. But the fact is these two fields are not the same thing.
Medical coding聽is the first step. During this process, a skilled medical coder will take a diagnosis, treatment or prescription and turn it into the right numeric or alphanumeric code. Each code is subject to its own set of guidelines; even the order in which codes appear can impact treatment and billing.
Medical billing, meanwhile, picks up where coding leaves off. Medical billers create a claim based on the medical codes and then assess what is due from the patient after insurance pays its portion. In essence, they act as the point of contact for the insurance company, the patient and, in some cases, the collections agencies.
Those working in medical billing and coding can sometimes be referred to as simply "medical coders". There are many聽coding specializations, however, including certified professional coders and coding for outpatient care, inpatient care and risk adjustment.
There are several different career paths for those interested in this field. Specialists can work for hospitals and clinical practices, health insurance companies and government agencies.
According to the聽U.S. Bureau of Labor Statistics, as of May 2024, medical records and health information technicians earned .听
Employment of medical records and health information technicians is projected to . About 14,200 openings for medical records specialists are projected each year, on average, over the decade.听
Salary ranges are not specific to students or graduates of 果冻视频. Actual outcomes vary based on multiple factors, including prior work experience, geographic location and other factors specific to the individual. 果冻视频 does not guarantee employment, salary level or career advancement. BLS data is geographically based. Information for a specific state/city can be researched on the BLS website.
BLS Occupational Employment Projections, 2024-2034 is published by the U.S. Bureau of Labor Statistics. This data reflects BLS鈥 projections of national (not local) conditions. These data points are not specific to 果冻视频 students or graduates..
According to the BLS, becoming a medical biller or coder requires a high school diploma and often certification. Some employers may require additional education, such as an associate degree, as well.
Typically, this process can take anywhere from a few months to up to a year-and-a-half, depending on how much time a student takes between courses. Time varies if a student pursues certification or decides on a broader, more general bachelor鈥檚 or associate degree in healthcare.
A big reason to get certified as a medical biller or coder is because it brings a proven skill set to potential employers.
Several types of medical coding certifications are available and obtainable with a few months of study (see below.) Indeed.com suggests that people interested in breaking into the medical coding field consider聽taking a certification exam聽after completing a specialized course and/or on-the-job experience.
Certifications can be pursued through聽the AAPC, AHIMA聽or other professional organizations. Students can also pursue a specialization like those noted earlier in outpatient coding, risk adjustment coding and inpatient coding.
Certifications are facilitated by professional organizations and include:
Make sure to review the requirements for certification closely, as some require associate degrees, experience in medical billing or coding and/or a certificate (not a certification) of聽course completion聽from an accredited university.
One way to learn the foundations of becoming a medical biller or medical coder is to take a self-directed聽online course in the fundamentals This type of course is聽meant for people to learn the basics related to medical coding. Often, students can study at their own pace.
Courses can be helpful for both established professionals and new learners. For professionals, medical billing and coding courses can be useful to help processes within a practice to operate at full potential. Professionals may also take courses to better understand the revenue stream for a practice or healthcare setting.
New learners can take courses to learn how coding is used in the industry, such as to bill insurance companies, and to learn how payers are billed and providers are paid.
If you're ready to look at medical billing and coding education, 果冻视频 has several options in professional development areas:
A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at 果冻视频 where he covers a variety of topics ranging from healthcare to IT.
Mark J贸hannsson is the Dean of the聽 College of Health Professions. He has a career spanning over 35 years of healthcare management, public health practice, higher education administration, teaching and clinical/behavioral research within corporate, community and academic settings. He has served as both an educational and keynote speaker, and he has been published in a variety of peer-reviewed and periodic literature.
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