How to become a medical coder
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Dreaming of a lucrative, work-from-home career in allied health? Consider becoming a medical coder. Medical coders, sometimes known as clinical coders or diagnostic coders, work behind the scenes to insure that doctors and hospitals are communicating clearly and systematically with insurance companies.
They do this by picking apart medical reports and meticulously converting them into codes that hospital systems and insurers can understand. Each aspect of a patient’s care corresponds to a specific code.
In this article, we guide you through the process of becoming a medical coder in 5 steps. We also reveal jobs and earnings data so that you can decide if this career is right for you.
What does a medical coder do?
One way to think of medical coders is as translators of the language of healthcare. They read through intricate medical records, diagnoses, treatments, and procedures and “translate” them into a standardized code format.
This insures that billing is accurate and medical histories are properly documented. Medical coding also helps administrators to analyze and optimize medical processes.
As a medical coder, you’ll spend most of your day in front of a computer. You will probably have a service level agreement (SLA), that stipulates how many tasks you need to achieve in certain time frame and the level of accuracy you must maintain.
On a normal day, the job of a medical coder looks something like this:
Start up your computer, check your email, and launch all the software programs you’ll need throughout the day
Prioritize your tasks and organize your patient charts
Read through medical records and search for important information
Convert the information into codes
Take notes on the charts you’re working on
Communicate with other stakeholders, like insurance companies or doctors
Audit the work of other coders to check for accuracy
Make sure everything is filed, stored, and saved properly before leaving your desk
Types of medical coders
There are 4 main types of medical coding, as listed below. Each type requires different certifications and may involve using different coding systems and software.
Professional fee coding – This involves coding for services provided by individual physicians and other healthcare professionals, like medical procedures, diagnoses, and treatments.
Outpatient coding – Outpatient coding revolves around services provided by hospitals or medical centers that don’t require an overnight stay, such as ambulatory services, emergency room visits, or minor surgeries.
Inpatient coding – This type of coding is for procedures that require overnight hospital visits.
Risk adjustment coding – These coders work with insurance companies, making sure that enough money is provided by insurance plans to take care of medical services required by certain patient groups.
Medical coder vs medical biller
Medical coders read through descriptions of a patient’s care and convert the services provided into codes.
Meanwhile, medical billers receive these codes and use them to generate invoices that are sent to the patients and insurance companies.
Find the best online programs for medical billing and coding
Search below to find an online medical coder certification to suit your needs.
How long does it take to become a medical coder?
Between 1 and 3 years. It just depends on whether you go for a certificate program, which takes a little less than 1 year to complete, or an associate degree, which takes longer.
» Read: How to become a nurse practitioner
How to become a certified medical coder in 5 steps
Below, we lay out 5 steps to become a medical coder.
1. Enroll in a medical coding program
This could be an associate degree program or a shorter certificate program. Many medical degree programs are available online, making this a convenient choice for working adults and non-traditional students.
During your program, you will learn about:
- Medical terminology and anatomy
- Healthcare documentation
- ICD-10 and CPT coding
- Regulatory compliance
- The ins and outs of insurance and reimbursement
- Soft skills like problem solving and communication
Do medical coders need a degree?
Technically, no. However, most medical coders get an associate degree in medical coding. A certificate program is as cheaper, faster alternative. You can get a medical coder certification online.
Note that a medical coding certificate program is not the same as a medical coding certification: you will still need to pass your certification exam after receiving your certificate.
2. Decide on a medical coding certification exam
While your certificate program or associate degree should do a good job preparing you to pass a medical coding certification exam, it’s always a good idea to study on your own.
There are 2 main professional organizations that provide medical coding certification exams: AAPC and AHIMA. Certifications from these 2 bodies are the most widely recognized in the industry, and passing their exams is one of the key medical coder requirements.
Both organizations provide multiple certification exams, depending on what setting you want to work in (e.g., as an outpatient coder, professional fee coder, etc.). Many coders go on to take several exams, so don’t worry too much about which one you choose.
A common choice for beginning coders is the CPC exam from AACP.
3. Join AAPC or AHIMA and pass your exam
It is a good idea to join either the AACP or AHIMA before taking your first exam. Besides getting you a discount on your exam fees, you will also gain access to study material, job openings, and other resources.
In any case, you will need to join one of these associations eventually to become a certified medical coder, which is a requirement for most jobs in the industry.
Employers will be able to verify that you’re a certified medical coder by looking up your unique ID number in the AACP or AHIMA databases.
Once you’ve joined the AAPC or AHIMA, you’re ready to take your exam. You will need a 70% score to pass the AAPC’s CCS exam.
4. Look for your first medical coding job
You are now a certified medical coder! It’s time to start looking for jobs. You can find job openings on the AAPC of AHIMA websites. Alternatively, browse vacancies at nearby hospitals and medical centers.
5. Get more certification to advance your career
Medical coders often have to take continuing education courses to maintain their certification and learn any new codes.
Furthermore, medical coders may want to take additional certification courses to expand their job opportunities or specialize. For example, professional fee coders may want to go on to become certified inpatient coders, who are paid slightly more.
Medical coder salary info
The Bureau of Labor Statistics reports that medical records specialists (which includes medical coders) earn an average of $46,660 per year, or $22.43 per hour.
However, the AAPC reports a slightly higher certified medical coder salary, ranging from $58,895 for Certified Coding Professionals to $64,267 per year for Certified Outpatient Coders.
Medical coder job growth
Jobs for various medical records specialists in the U.S. are expected to grow by 7% between 2021 and 2031, which is about as fast as average on the job market.
Final thoughts
Medical coding is a fairly lucrative career that does not require you to have a bachelor’s degree. It has many advantages, including regular, predictable hours and ample opportunities to work from home. If you’re a lifelong learner who is good with detail, and you don’t mind spending most of your day in front of a computer performing routine tasks, this could be an excellent career for you.