What Is Medical Coding?

 Medical coding is the transformation of healthcare diagnosis, procedures, medical services, and equipment into universal medical alphanumeric codes. The diagnoses and procedure codes are taken from medical record documentation, such as transcription of physician's notes, laboratory and radiologic results, etc. Medical coding professionals help ensure the codes are applied correctly during the medical billing process, which includes abstracting the information from documentation, assigning the appropriate codes, and creating a claim to be paid by insurance carriers.

Medical coding happens every time you see a healthcare provider. The healthcare provider reviews your complaint and medical history, makes an expert assessment of what’s wrong and how to treat you, and documents your visit. That documentation is not only the patient’s ongoing record, it’s how the healthcare provider gets paid.

Medical codes translate that documentation into standardized codes that tell payers the following:

• Patient's diagnosis
• Medical necessity for treatments, services, or supplies the patient received
• Treatments, services, and supplies provided to the patient
• Any unusual circumstances or medical condition that affected those treatments and services

Like a musician who interprets the written music and uses their instrument to produce what's intended, Medical Coding requires the ability to understand anatomy, physiology, and details of the services, and the rules and regulations of the payers to succeed.

If you’re looking for a rewarding and lucrative work-from-home job, medical coding could be right for you. Medical coding is a popular choice for people seeking a career that evolves with new technology, clinical research, and public health initiatives. In fact, the demand for medical coders is at a historic high. Fueled by the healthcare needs of an aging population, the U.S. Bureau of Labor Statistics lists medical coding among the 20 fastest growing occupations.

This bodes well for those seeking job security and an exciting career with the potential to work from home. According to AAPC’s 2019 Medical Coding Salary Survey, 33.8% of respondents work from home thanks to technology that enables HIPAA-compliant remote access to electronic health records (EHR). This trend is expected to continue and perhaps grow in popularity as a result of the COVID-19 pandemic.

AAPC member medical coders average $54,890 per year. Without certification, they earn $42,015 per year while those with one certification earn 33% more, $55,923. However, where you live, how many credentials you have, what role you play in the revenue process, and how much education you have outside of coding can influence your salary. 

Information provided by AAPC.