In this Article
Professional insights: Robyn Korn
Medical biller and coder jobs fall under the U.S. Bureau of Labor Statistics’ (BLS) category of medical records specialists. The median pay for this field is $50,250 annually.
Medical billers and coders are critical to how medical settings function. Without their work of translating patient care into codes and then submitting those codes to payers, doctors and nurses wouldn’t receive reimbursements.
Key takeaways
- Medical billers and coders fall under the BLS category of medical records specialists, with a median annual salary of about $50,250 and projected job growth of 7.1% through 2034.
- Pay varies significantly by state, work setting, experience, education and certification, with the highest median wages generally on the West Coast and in major metro areas.
- Earning more typically involves gaining experience, adding certifications, pursuing additional education and targeting higher-paying employers such as insurers or large health systems.
Medical billing and coding salary overview
The national median annual salary for medical billers and coders is $50,250, or $24 per hour, according to the BLS.
It helps to remember that medical billing and coding are distinct functions, though workers in these fields share similar skills, and they are reimbursed differently. In general, medical coders tend to earn more than billers. Some positions entail one person working as both biller and coder, though that is less common and tends to occur in small markets or small medical settings.
Income varies, of course, and many factors may impact your salary. You’ll also find that the job outlook for this field is strong as demand for billers and coders is steady as healthcare organizations grow to keep up with patient needs, says the BLS.
Medical billing and coding salary by state
You know that real estate adage, “Location is everything”? When it comes to salaries for medical billers and coders, where you live and work isn’t everything, but it does have an impact.
When you break it down, the variance in pay according to location is due to a handful of reasons. First, the cost of living depends on where you live. Population—and therefore the concentration of people who need medical care—can also impact how much healthcare organizations are able to pay.
States on both coasts such as Rhode Island, the District of Columbia (D.C.) and Washington offer some of the highest median salaries for billers and coders according to BLS data. States in the Southeast (including Alabama, Arkansas and Mississippi) have the lowest median salaries for these positions, but keep in mind that it costs significantly less to live there.
In general, jobs in cities pay better than jobs in rural areas. Among metropolitan areas, salaries vary.
Wondering which states pay the best? Check out the table below.
Medical billing and coding salaries by city
Take a look at the ten metro areas in the U.S. with the highest median annual salaries for medical billers and coders.
Find out what your salary could be as a medical biller and coder in your state
Learn what you may be able to earn in your state, how the cost of living and other factors could impact your pay, why education matters and much more.
Other factors that affect medical billing and coding salaries
While location plays a big role in earning potential, pay may vary depending upon several factors including your work setting, how much experience you have, what certifications you have earned and your level of education.
Where you work
Even though the responsibilities and day-to-day work is similar for billers and coders no matter where they work, the type of work setting influences how much you are paid. After all, as a biller or coder, you may be qualified to work in all sorts of healthcare facilities. (Remember, you may need to tailor your education depending on where you want to work, since coding systems vary among healthcare settings.)
Take a look at how the median annual salary for medical billers and coders varies by common work settings, according to the BLS:
| Work setting/industry | Median annual salary |
|---|---|
| Hospitals | $56,520 |
| Physician offices | $45,620 |
| Management of companies and enterprises | $60,750 |
| Insurance carriers | $63,790 |
| Professional, scientific and technical services | $49,970 |
Keep in mind that some medical billers and coders work from home. These positions can either be remote jobs for employers such as a hospital or clinic, working for an independent company that serves healthcare facilities, or as an independent contractor who works directly with healthcare organizations. Pay in these work-from-home environments may not directly match overall trends.
Before you make the leap to working from home, investigate how much others make doing the same thing in your area.
Professional certifications
Earning professional certifications and credentials may impact your pay in several ways. First of all, they provide evidence of your skills, potentially making you an attractive candidate. “If you have coding credentials, that looks good on your resume,” explained Robyn Korn, MBA, RHIA, CPHQ, an adjunct instructor of medical coding at Purdue University Global. “They show you have a knowledge base employers are looking for, making them more likely to consider you.”
Secondly, professional certification and credentials may be able to help move you up the pay scale, no matter the salary you started at.
Some credentials are very specific and may demonstrate your ability to move into specialty areas. Professional certifications in ophthalmology or gastroenterology are specialized rather than general, for example.
Pay structure
When you’re hired as a medical biller, medical coder, or both jobs, you may be paid as an hourly (non-exempt) employee or salaried (exempt) employee. When you work hourly, you will need to clock in and out to accurately log your hours.
Overall, coders and billers who work more than 40 hours a week are paid more—no surprise there. Some of this increase comes from hourly workers who earn overtime, which is often 1.5 times the hourly rate.
Employers prefer to avoid paying overtime, though, so this scenario is more likely to play out when an organization is struggling to hire enough billers and coders to fulfill needs.
Some billers and coders with salaried positions work more than 40 hours. Workplaces that have the expectation that salaried employees will put in more than 40 hours a week may compensate accordingly by offering a higher salary.
Independent billers and coders, and those who work for outsourcing companies that serve healthcare organizations, may be paid differently. Other common pay structures include per-case or per-claim or a set percentage of the amount you claim.
How can I earn more as a medical coder?
You can’t control some things that impact your pay. For example, you can’t fast forward in time so you suddenly have more experience. That said, billers and coders can take steps within their power to earn more.
Most important is to be thoughtful and strategic about which steps you take—and in what direction.
Not long ago, several people on Korn’s staff wanted to advance their careers, so they started a coding program. The problem? The program didn’t focus on the type of skills needed to grow their career in the way they wanted. “A program or certification only takes you where you want to go if it aligns with your goals,” Korn said.
- Education:
- More education generally translates to a higher income. Can you take classes part time to earn an associate or bachelor’s degree? You can increase your earning potential by studying online or in person.
- Certification:
- Medical coders who have a basic credential, such as a Certified Professional Coder (CPC), generally earn more than those who have finished a training program but haven’t sat for a certification exam. You can also stack certifications, adding more throughout your career to potentially increase your pay.
- Networking:
- “When you network with other professionals in the field, you open yourself up to advance your career,” Korn said.
What’s the job growth outlook for medical billers and coders?
The career outlook for medical billing and coding is promising. Employment in this field is projected to grow 7.1% through 2034 according to the BLS, above the national average for all jobs.
The BLS says an aging population is partly driving the demand for medical billers and coders. As patients age and live longer and with more chronic illnesses, health care organizations likewise need to grow to accommodate these changes. Facilities will need medical coders and billers to ensure they are properly reimbursed for this uptick in care.
Korn notes a trend of increasing use of electronic coding systems and auditing software. These tools are unlikely to fully replace professionals, though. An experienced biller and coder will likely be needed to manage the huge stream of electronic information, ensure the correct codes are used and ensure an efficient flow of revenue.
Resources to learn more
The American Academy of Professional Coders (AAPC) offers ongoing education and workshops, professional networking and certifications. “The AAPC focuses more on coding in physicians’ offices and clinics,” Korn said, so this is a particularly important resource if you’re interested in those settings.
The American Health Information Management Association (AHIMA) provides certifications, education, conferences and advocacy. “If you’re not sure what setting appeals to you, you can rely on AHIMA because it gives you exposure to both physicians’ offices in addition to hospitals,” Korn said.
Frequently asked questions
What is the starting salary for medical billing and coding?
The answer to this questions can vary significantly depending on numerous factors. It’s safe to assume that entry-level employees typically earn between the low- and mid-point of overall salaries. According to the BLS, that might fall between $35,780 (10th percentile) and $50,250 (50th percentile or median).
Do medical coders make more than medical billers?
Yes, medical coders typically earn slightly more than medical billers because coding requires more specialized knowledge of medical terminology, coding systems and compliance standards. In fact, some medical coders start off as billers since these jobs are usually less competitive and require less education to enter the field.
Which states pay medical billers and coders the most?
States with higher healthcare demand and cost of living, such as Rhode Island, Washington, Nevada, California and New York, tend to offer higher-than-average salaries for medical billing and coding professionals.
How does certification affect medical billing and coding salary?
Certified professionals generally earn more than non-certified workers, as credentials from the AAPC or AHIMA may qualify candidates for higher-paying roles and advancement opportunities.
How much can experienced medical billers and coders make?
Like other professions, billers and coders with more years of experience under their belt tend to command higher salaries. Salaries for more experienced professionals may fall between the median ($50,250) and 90th percentile ($80,950), but exact salaries can vary.