Medical coding is the process of assigning standardized numerical medical codes to patient medical charts. This coded information is used to ensure that insurance companies, government organizations, such as medicare, and patients alike all receive accurate billing statements for medical services performed. Medical coders perform the work of converting diagnostic and medical procedural information into simplified numerical codes that can be electronically processed for payment by third party payers – Insurance companies and Medicare, for example.
The process of medical coding requires an attention to detail to ensure accuracy of billing records. Because of the large dollar amounts involved, medical coding is a highly regulated and tightly supervised activity. Medical coding is also subject to frequent and rigorous audits to ensure accuracy in the medical billing process as there are literally billions of dollars at stake. In many ways, medical coding is a much more scrutinized activity than, say medical transcription.
Medical Coding work is typically performed in hospitals or clinics, although we are beginning to see some of these medical coding and medical billing jobs migrate to work at home positions. Medical coders generally begin with a transcribed patient medical record and transform procedures and diagnoses etc. into numerical codes. This takes a great deal of expertise in medical terminology and the associated medical codes. Of course this requires medical coding training. Medical billing takes the coded output produced by the coder and submits it for reimbursement to insurance companies, medicare, or the patient. Many times a single person will perform both the medical coding and the medical billing functions. This is particularly true in smaller clinical settings. In large, high volume healthcare operations, medical coders and medical billers are often separate and specialized functions. Of the two, medical coders generally enjoy a higher income and require more specialized training.
