What Is Medical Coding? A Medical Coder’s Duties, Job Outlook, and More

Key Insights:

• Medical coders translate patients’ health information into standardized codes. These codes are used to help determine how much insurance companies will reimburse healthcare providers versus the patient’s portion of the expenses.
• A medical coding career may be of interest if you want a healthcare position that is expected to grow, doesn’t involve direct patient care, and doesn’t require a 4-year degree to enter.
• Ultimate Medical Academy can help you prepare to pursue a medical coding role. Our courses provide the knowledge and skills needed in an entry-level position.

Roughly 1.9 million openings are projected in healthcare occupations each year between 2024 and 2034, on average.¹ If you’d like a career in this field that doesn’t involve direct care, one option to consider is medical coding.

What is a medical coder, what do they do, and what does medical coding training look like? We answer all these questions and more. Read on to get a behind-the-scenes look at the medical coder career path.

What Is a Medical Coder?

Medical coders update patient records with standardized information (codes) used by healthcare companies for billing and data management purposes. This involves analyzing patients’ medical charts and assigning the appropriate codes based on the products or services provided.

Every time a patient receives medical care, a code needs to be assigned to their diagnoses, symptoms, and treatments. The specific codes assigned determine how the insurance company is billed for the patient’s visit. Selecting the correct codes is important for avoiding claim denials, helping to ensure that providers are reimbursed the proper amount and in a timely manner.

The main coding systems used by medical coders include:

• International Classification of Diseases (ICD)
• Current Procedure Terminology (CPT)
• Healthcare Common Procedure Coding System (HCPCS)

What does a medical coder do?

It’s important to understand that medical billing and medical coding are two different job functions. Some offices have one person perform both tasks (a medical biller and coder), though larger facilities may employ separate billing and coding specialists.

In cases where the work is divided into two jobs, the medical coder focuses on updating patient health records and verifying they are properly coded. The medical biller then uses these codes to submit and follow up on claims with insurance companies.

Medical coders may be known by different job titles. Other names for medical coding professionals include:

• Medical coding specialist
• Diagnostic coder
• Medical coding analyst
• Clinical coding officer
• Medical coding auditor

Where do medical coders work?

You can find medical coders in hospitals, private practices, urgent care centers, long-term care facilities, and other healthcare organizations. Any facility or practice that provides medical services or products can use a medical coder to update patients’ health records and/or assist with the billing process.

Working in hospital settings can seem more demanding because of the number of patients. However, having fellow coders share the workload can help keep the job manageable. In addition, if you’re new to medical coding, being able to learn from experienced staff can help you learn tips and tricks for efficient coding practices.

If you work in a small office, you might be the only medical coding and billing professional on staff. Smaller offices and private practices can provide the opportunity to build relationships with other staff members and regular patients. You may also be able to learn other aspects of office work in these types of settings, which can enhance your experience.

Another option might be medical coding from home. To work as a remote medical coder, you would need access to high-speed internet. Home-based medical coder jobs might also require that you have your certification and some type of coding experience. Therefore, you may have to find an in-person medical coding job before you’re able to provide this service remotely.

A Day in the Life of a Medical Coder

As a medical coder, your day may start with logging onto your computer and opening the various software programs needed to perform your job. Next, you might check for updated patient charts, deciding which ones you’ll handle first.

In a small practice, you might be responsible for processing all patient charts, while you may specialize in one area of coding (such as working solely on inpatient or outpatient surgery records) when employed by a large hospital.

After prioritizing your charts, you’ll likely perform a variety of coding tasks: reviewing medical charts, assigning codes, and possibly assisting with billing. A large part of your day will take place at the computer, so it can be helpful to set your workstation up in a way that supports efficiency and productivity. Your employer may have expectations as to how many charts you’ll need to complete each day, so time management is key.

At the end of the workday, you’ll save your work, log out of all your computer programs, and ensure any paper-based records are properly filed away. Due to patient privacy and confidentiality laws, patients’ health records cannot be visible to any unauthorized individuals who may walk past your desk.

Medical Coding Examples

To give you a better idea of what a medical coder’s job could be like, let’s look at a few examples of a typical job task.

Example #1:

You open a medical report and see this entry: Patient is a 20-year-old female who presents with a cough. Non-acute and non-chronic bronchitis is suspected. Prescribed patient oral azithromycin, 1 gram.

As a medical coder, it’s your responsibility to code this entry accurately. Using computer software, you locate the ICD code for bronchitis that is not specified as acute or chronic, which is J40.² Next, you find the HCPCS code for one gram of oral azithromycin, which is Q0144.³ These codes are placed in their proper places within the patient’s records, so a claim can be sent to the insurance provider for reimbursement.

Example #2:

Here’s another medical coding example: Patient is a 65-year-old male who presents with pain while urinating. Urinary tract infection is suspected. Urinalysis and urine culture are performed, finding that bacterial infection is present. Administered 5 mg sulfamethoxazole and 1 mg trimethoprim via injection.

In this case, you would locate the ICD code for painful urination (coded as “painful micturition, unspecified”), which is R30.9,⁴ and the CPT code for a urine culture (coded as a urinalysis bacteriuria screen), which is 81007.⁵ The code for the subsequent bacterial urine culture depends on whether it was a quantitative colony count or if it identified each isolate. Obtaining more information from the healthcare provider is necessary for choosing the right one.

Once the procedural codes are entered, the next step is to enter the diagnosis. The diagnosis code for a urinary tract infection, site not specified, is N39.0,⁶ and the code for an injection with 5 mg sulfamethoxazole and 1 mg trimethoprim is J2865.⁷

Why Consider a Career As a Medical Coder?

The Bureau of Labor Statistics (BLS) projects that employment of medical secretaries and administrative assistants, including medical coders, will grow 4% between 2024 and 2034.⁸ Additional reasons to consider a medical coding career path can include:

• Helping healthcare organizations operate smoothly and efficiently
• Playing an active role in making sure patients’ medical records are accurate
• Working in healthcare without having to provide direct patient care
• Pursuing a healthcare career that doesn’t require a 4-year degree
• Gaining access to potential advancements and leadership roles through experience

How to Become a Medical Coder

Some employers offer on-the-job training for medical coding roles. Others require the completion of a formal training program. Even if it doesn’t, enrolling in a medical coding program can help you learn the terminology and skills needed for this healthcare role.

Medical coding education and training

You can generally earn a medical coding certificate or diploma in under a year, while an associate degree program may take a year and a half or longer to complete (both depending on the rate of the individual student). A diploma program can be appealing if you want to start pursuing a medical coder career quickly, while an associate degree can enhance your credentials.

Courses within these formal training programs can help you learn more about important topic areas such as:

• Medical terminology
• Anatomy and physiology
• Diagnostic and procedural coding
• Billing and coding applications
• Healthcare communication

Some medical coding programs even prepare you for industry certifications such as the CPC (Certified Professional Coder) credential. To attain certification, you must take an exam administered by the certifying organization, achieve a passing score, and meet certain eligibility requirements.

For example, it takes two years of on-the-job experience or 80 contact hours of a coding preparation course and one year of work experience to achieve CPC status with the AAPC.⁹ New graduates who pass the exam earn a CPC Apprentice (CPC-A) designation, which can be updated to full CPC with proof of experience.

Is Medical Coding Right for You?

Does a career as a medical coder sound appealing to you? If so, Ultimate Medical Academy (UMA) is here to help.

We offer a Medical Billing and Coding Associate of Science / Associate of Applied Science Degree program that can be completed in 18 months or more.¹⁰ This program prepares you for both medical coding and medical billing roles, in case you decide to pursue positions that perform dual services.

Why pursue medical coding training at UMA?

This UMA program is offered entirely online. There are no commutes to and from campus, which can make it easier to fit schoolwork into your day. You also receive preparation to sit for the CPC exam,¹¹ should you decide to pursue this professional certification after graduation.

If you’d like career guidance and support post-graduation, we offer that too. We can help you prepare your resume, gain confidence for upcoming job interviews, and may even be able to may help connect graduates with potential employers as part of career services support. At UMA, we’re with you throughout your academic and career journeys.

Take the Next Step Toward Pursuing a Medical Coding Career Path

If you’re ready to pursue a medical coding career path, you can start by exploring Medical Billing and Coding career training. Learn more about the courses you’ll take, how it prepares you to work in this field, and more.

Alternatively, if you’re unsure which healthcare field you want to join, or you want to know what else is out there, let us know. We’d love to hear about your interests, career goals, dreams, and even your concerns. Together, we can go through your options and help find the right career path for you.

FAQs

• How do you become a medical coder? Becoming a medical coder requires that you understand industry-specific terminology. Medical coding training can provide this knowledge, helping to prepare you for a career in this field.
• How much does a medical coder make? Medical coding wages can vary based on your level of education, experience, certifications, and the geographic location in which you work. Online salary sites can provide information more specific to your situation. The Bureau of Labor Statistics is another potential resource. It provides wage information for medical secretaries and administrative assistants, the category in which medical coders would fall.
• What does a medical coder do? A medical coder translates a patient’s diagnoses, treatments, and medical procedures into codes so the insurance company knows how much to reimburse the healthcare provider versus what portion of the expense falls back on the patient.
• How long is schooling to become a medical coder? It depends on the school and program you select. UMA’s associate-level medical billing and coding program can be completed in 18 months or more.¹⁰
• Will AI replace medical coders? No, artificial intelligence (AI) is not expected to replace medical coders. This is due in part to medical records being complex and evolving healthcare regulations. Instead, AI is anticipated to support or supplement the work that medical coders do, such as by increasing productivity and precision.¹²