Medical Billing And Coding Salary Guide | NurseJournal.org (2024)

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Medical billing and coding specialists use coding systems to manage patient information for billing, insurance reimbursem*nts, healthcare data, and electronic health records. A candidate for these roles typically must possess a postsecondary medical billing and coding certificate for employment.

This guide focuses on medical billing and coding salary information from the U.S. Bureau of Labor Statistics (BLS) and other sources. Readers can explore wages by types of positions, location, and salary growth projections.

Fast Facts About Medical Billing and Coding Specialists

While candidates can pursue medical billing and coding jobs with postsecondary certificates or high school diplomas, those interested in becoming a medical billing and coding specialist can earn higher salaries with degrees. The American Academy of Professional Coders (AAPC) reports that the average medical coder salary for those with a master’s degree or higher is just under $70,000. Medical coders with no college average just over $50,000 per year.

The graphic below lists current hourly wages for each degree level and for no college education.

$25.12
No College

$25.81
Associate Degree/Certification

$26.74
Bachelor’s Degree

Source: AAPC

According to Etactics, the COVID-19 pandemic contributed to a 16.5% decline in the healthcare industry in 2020, despite an increase in hospitalized patients. However, medical billing and coding specialist positions declined by only 6% — and only 2% among those with certification.

While medical billing and coding salaries decreased by nearly 3%, on average, billers and coders in 16 states received pay increases on average.

Medical billers and coders have still faced challenges during the pandemic. These issues include transitioning to remote workplaces, adjusting to new coding for COVID-19 and telehealth services, and dealing with an increase in insurance claim denials.

As the following illustrates, medical coding and billing specialization areas influence salaries. Compensation for these common positions starts on the lower end for billing clerks, with significant pay increases at the management level.

AAPC tracks variations in medical billing and coding pay based on certification, practice settings, and clinical focus areas. Experience and education level also play a crucial role in compensation.

The following information shows the impact of certifications on medical billing and coding salaries.

The BLS lists the states with the highest annual medical billing and coding salaries, as summarized in the table below. The size of the community and its economic health can influence compensation rates, as in the District of Columbia, which ranks the highest.

Geographic location and cost of living also affect pay rates. For example, Mississippi and Arkansas average lower medical billing and coding salaries and also rank among the 10 most affordable states.

Medical billing and coding specialists’ cities also affect their earnings, but BLS data indicates that areas other than the largest urban areas provide the highest incomes.

As the table below demonstrates, billers and coders in large metropolitan areas earn the most on average. For example, New York City’s metro area tops the list.

Medical billing and coding salaries also vary among workplace settings. AAPC statistics in the following table indicate that larger employers, such as health systems, may offer higher wages. Hospitals and large physicians’ practices also pay higher salaries.

With the exception of medical and health services managers, medical billers and coders typically outearn those in similar occupations, as illustrated by the BLS figures below. Billing and coding professionals with certifications, specializations, and higher education levels can earn even more.

According to May 2021 BLS wage data, the top 10% of health information technologists and medical registrars make an annual wage of $98,490, while the lowest-paid 10% earn an annual wage of $29,680. Several factors drive these differences, including certification, education level, and length and type of experience.

This section highlights how medical billers and coders can increase their salaries. Readers can also explore suggestions from AAPC on how to get started.

Certification signifies a higher level of knowledge and skill. According to AAPC, noncertified billers and coders perform the same work as their certified coworkers but earn 27% less. Initial certification requires candidates to pass the certified professional biller or certified professional coder exams.

2. Increase Education Level

3. Gain Experience in Administrative Roles

4. Switch Workplace Setting

While hourly wages vary by credentials, education, experience, and location, the BLS lists the median hourly wage as $26.71. The lowest 10% make $14.27, and the highest 10% bring in $47.35. These figures all reflect data as of May 2021.

In terms of workplaces, large health systems pay the most for medical billers and coders with an average salary of $57,860. Certified professional compliance officers earn a median wage of $80,550, indicating that certification can significantly increase pay. Billers and coders in the Pacific region (Alaska, Washington, Oregon, and California) make an average of $62,810 per year.

Certified professional compliance officers earn an average of $77,190 a year, followed by certified professional coder-instructor professionals, who make $73,620. Certified documentation expert-outpatient coders also make an average annual salary exceeding $70,000.

The AAPC survey found that over 70% of medical codign professionals work entirely or partially from home. While the pandemic may have contributed to this percentage, employers have created a consistent work-from-home trend for the past several years.

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