Medical coding and billing are separate, but interrelated, functions performed mainly via computer.
Medical coding and billing represent business functions within the health care industry, each with their own distinct functions within an organization. Although they are separate functions, coding and billing work together in order to ensure that health care providers are reimbursed for their services. In some organizations, coding and billing is performed by the same professionals. In other organizations, the functions are performed by separate departments and individuals.
Medical Coding
Medical coding assigns numeric and alphanumeric codes to the diagnoses and procedures found in patient medical records. In essence, the codes provide a condensed version of the lengthy descriptions for illnesses, diseases and treatments. The codes supply important information for health care statistics, reimbursement, resource management and marketing.
Medical Billing
Medical billing utilizes the numeric and alphanumeric codes assigned during the medical coding function. The process of medical billing includes submitting medical codes on claim forms to payers, providing follow-up documentation to payers, updating patient insurance information and appealing claims denials.
Medical Coding Training
The medical coding function is performed by specially trained individuals called coders. The majority of medical coders receive training through a diploma or certificate program offered through a community college or professional association. Some medical coders graduate from a Health Information Technology associate degree program which specializes in coding and reimbursement. Coders also have the opportunity to receive voluntary professional credentials. Professional credentials prove a level of coding expertise and dedication. Examples of coding credentials include the Certified Professional Coder through the American Academy of Professional Coders, or the Certified Coding Associate through the American Health Information Management Association.
Medical Billing Training
Medical billing is also performed by specially trained individuals who often attend a certificate or diploma program geared toward medical and insurance billing. Medical billers have their own specialty credential called the Certified Reimbursement Specialist. This voluntary credential through the American Medical Billing Association also demonstrates a high level of commitment and professionalism within the medical billing community.
Medical Coding Job Outlook
The Bureau of Labor and Statistics in 2010 reports that health information careers such as medical coding are expected to "grow much faster than average" with a "very good" job outlook. According to Salary.com, the average annual salary in 2010 for a medical coder is $32,000 to $56,000. Credentialed coders often receive higher salaries than non-credentialed coders. Medical coders work in settings such as hospitals, physician offices, long-term care facilities, consulting firms and even governmental organizations.
Medical Billing Job Outlook
According to the Bureau of Labor and Statistics, health care industry wages and employment--including medical billing--is expected to grow "22 percent through 2018." A Salary.com survey reported that medical billers make between $25,000 and $37,000 annually. Medical billers work in a variety of health care settings such as physician offices, hospital billing departments and insurance companies.
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