Medical billers and coders play a critical role in the healthcare revenue cycle. Their work processing medical claims ensures providers receive accurate reimbursement for services rendered. But what can these professionals expect to earn as their billing and coding career progresses?
We explore key factors influencing medical billing and coding salaries, average pay ranges, top industries and states, career growth opportunities, and tips to maximize earning potential.
Typical Medical Billing and Coding Salaries
According to the U.S. Bureau of Labor Statistics (BLS), the average annual salary for medical records and health information technicians, including medical billers and coders, was $46,590 as of 2020. The lowest 10% of earners received $30,820 or less, while the highest 10% earned $75,030 or more annually.
Average salaries for common billing and coding roles:
- Medical Biller: $36,000 per year
- Medical Coder: $45,000 per year
- Certified Professional Coder (CPC): $55,000 per year
- Remote Medical Coder: $49,000 per year
Specialized clinical coding in high demand areas like surgery, radiology, and cardiology also tend to command higher compensation.
Key Factors Influencing Medical Billing and Coding Salaries
Several variables impact expected compensation:
- Location: Where you work significantly sways earnings potential. Major metropolitan hubs tend to pay more than rural regions.
- Experience Level: Codery and billers early in their careers generally start below average ranges. With time, salaries increase.
- Education and Certifications: Coders with credentials like CPC, CPB, and CCS earn higher salaries on average than non-certified peers. Some roles mandate certification.
- Clinical Specialty: Coders specialized in complex fields like oncology, neurology and cardiology can earn more owing to higher skill demanded.
- Type of Organization: Large hospitals and health systems tend to offer better compensation than smaller clinics and practices.
- Management Roles: Taking on leadership roles like coding director, auditor, or revenue cycle manager provides salary upside.
- Industry: Coders working for payers, consultants, or technology vendors may earn more than provider organization staff.
Top Paying Industries for Medical Billing and Coding
The highest medical billing and coding wages are found within these industries according to BLS:
- General Medical and Surgical Hospitals: $50,460 average salary
- Management of Companies and Enterprises: $48,840
- Insurance Carriers: $47,640
- Employment Services: $44,150
- Continuing Care Retirement Facilities: $42,040
Experienced coders working for insurance carriers or consultants that offer services to hospitals and practices tend to earn toward the higher end of ranges.
Best Paying States and Metro Areas
Regions with the highest average salaries include:
States:
- California – $56,450
- Alaska – $51,900
- Minnesota – $51,330
- Washington – $51,310
- Connecticut – $50,520
Metro Areas:
- San Jose, CA – $71,000
- San Francisco, CA – $68,740
- Madison, WI – $59,120
- Minneapolis, MN – $58,640
- Boston, MA – $58,330
Rural areas typically lag urban regions in compensation. Large coastal cities and metro areas where cost of living is higher extend higher wages.
Starting Salary vs Long Term Earning Potential
In the first year, medical billers and entry level coders can expect to earn:
- Medical Biller – $28,000 to $38,000
- Medical Coder – $35,000 to $45,000
With experience, continuous learning, specialization and willingness to take on leadership duties, salaries can rise significantly over a career:
- Senior Medical Coder – $50,000 to $65,000
- Certified Professional Coder – $55,000 to $75,000
- Consultant or Auditor – $70,000 to $85,000
- Coding or Revenue Cycle Director – $85,000 to $110,000
Specialized clinical coders working for large practices, hospitals and vendors can earn $80,000 to $100,000 once fully proficient. The long term outlook remains strong for seasoned professionals.
Pandemic Effects on Medical Billing and Coding Salaries
COVID-19 increased demand for medical coders given the need to track new codes and diagnoses. This resulted in accelerated salary growth. One survey by the American Academy of Professional Coders found 56% of coders received pay increases during 2020. Bonuses also became more prevalent.
However, medical billers were more susceptible to downturns depending on how volumes at specific practices or facilities trended. Some billers were furloughed or had hours reduced temporarily. But healthcare workers as a whole fared better than many other industries.
In the long run, medical billing and coding continues to be viewed as a relatively stable career path. Ongoing medical advances and complex regulations ensure ongoing need for skilled billers and coders.
Outlook for Medical Billing and Coding Careers
The BLS projects employment for medical records and health information technicians will grow by 8% from 2020 to 2030, faster than the average across all occupations. Several factors contribute to optimistic outlook:
- Ongoing healthcare complexity results in continuous need for trained coding and billing staff.
- Population growth and aging demographics boosts healthcare utilization and claim volumes.
- Advances in digital health records increase jobs for those with technical billing expertise.
- More preventative care utilization expands coding and claim opportunity.
These elements signal strong long term prospects for medical billers and coders as key healthcare revenue cycle roles.
Getting Started in Medical Billing and Coding
Typical requirements to break into medical billing and coding:
- High school diploma or equivalent is generally needed to start. Associate or bachelor degree preferred.
- Coursework or vocational certificates focused on medical terminology, anatomy, disease processes, and reimbursement workflows.
- Proficiency with medical billing tools and systems like practice management software and classification codes.
- Strong attention to detail, organization, analytical ability, and communication skills.
- Professional certifications like CPC, CPB, and CCS demonstrate competency.
Gaining initial experience through internships or apprenticeships provides a head start. Entry level roles position workers to advance.
Maximizing Your Earning Potential Over Time
Some ways to grow income over your career as a biller or coder:
- Obtain specialty coding certifications (CIC, CDEO, CEMC, etc) to demonstrate specialized expertise in higher pay disciplines.
- Pursue management roles like coding director that oversee teams, compliance, auditing, and quality assurance.
- Join professional associations like AAPC and AHIMA to access training, networking, and skill-building opportunities.
- Consider consulting or contract-based remote work that offers earnings upside.
- Relocate to metro regions with higher compensation scales.
- Transition into corporate roles with payers, health IT vendors, or consultants.
- Leverage experience to teach or develop curriculum for new billing and coding professionals.
Continuous learning and willingness to take on responsibilities expands earning capacity over time.
The Next Step in Your Medical Billing and Coding Career
This overview provides key insights into typical salary ranges, growth trajectories, and factors impacting medical billing and coding compensation. While pay varies based on multiple aspects, the long term career outlook remains promising. If you are detail-oriented, comfortable with technology, and interested in playing a key operational role in healthcare, medical billing and coding offers tremendous prospects. Use the guidance provided to make informed decisions and maximize your earning potential.
Summary
- Medical billers and coders earn an average salary of $46,590 per year according to 2020 data from the Bureau of Labor Statistics.
- Salaries vary based on location, experience, certifications, specialty, facility type, and specific role like auditor or manager.
- The highest paid industries are hospitals, insurance carriers, and management firms. Metropolitan regions also pay more than rural areas typically.
- With experience, seasoned coders and those in leadership roles can earn $80,000 to $100,000 annually. But new billers and coders start around $35,000 to $45,000 when first entering the field.
- Demand and career outlook remains strong for medical billers and coders given healthcare complexity, aging population, and technology advances requiring their skills.
- Getting started requires some post-secondary training in medical administration, billing practices, and anatomy. Professional coding certifications greatly boost prospects.
- Salary potential grows over time through obtaining specialty credentials, pursuing management roles, relocating, and transitioning into corporate or consulting roles.
In summary, medical billing and coding provides stable, promising career potential for those interested in the healthcare revenue cycle. While starting salaries are relatively modest, tenured professionals can expect to be well-compensated.