Many people consider medical coding as a career for multiple reasons – as a growing field, jobs are increasingly easier to find for certified coders, many jobs have flexible hours, and some coders are even able to work from home. What attracts others is the potential of a reasonable salary without years of college.
Average Salaries
In 2008, according to Salary.com, the middle 50 percent of medical billers and coders earned between $35,999 and $44,562 a year. The Bureau of Labor Statistics places the median at only $30,000, but does say the highest 10 percent earned more than $45,260.About 20% of medical coders in the US are employed in hospitals. Medical coders can also be found in doctor’s offices, nursing homes, government agencies and insurance companies.
Salary Variables
There are a number of different variables that will affect how much a medical coder earns. Geographic location plays a role, as those who live in the Midwest are likely to make less money than coders who in the northeast or in central California, for example. The best paying area is in the Atlantic region.
Medical coders who specialize, have a bachelor’s degree and oversee others in their department are likely to make more as well. Like most jobs, your pay is directly related to your education, experiences, and licensure/certification. While you may be able to get a job without a formal medical coding certification, it isn’t likely to pay as well.
In fact, the American Association of Professional Coders (AAPC) says that uncertified coders will make about $10,000 less than certified coders – that’s an 18% difference. Experience matters as well, with the average newcomer to the field making $14,73 an hour, compared to someone with 15 years of experience who averages $23.37 an hour.
Generalist or Specialist?
It makes sense – the more narrow your specialty, the more money you are likely to make. If you are willing to get certified in a specialty area and focus in that area, your salary may well rise accordingly. What is surprising is the variability even among specialists. According to the AAPC, neuropsychiatry medical coders make an average of $62,500 a year, almost $15,000 more than someone certified in plastic surgery.
Owning your own business
Donna Avila-Weil, the author of “Independent Medical Coding : The Comprehensive Guidebook for Career Success As a Medical Coder” explains that “many facilities finding it necessary to meet coding timetables are turning to contract vendors to provide these skilled services.”
Only about a third of medical coders are able to telecommute, while the rest in offices or medical practices. For people who are committed to working from home, starting your own medical coding business is an appealing alternative. One common mistake beginning medical coders make is thinking that they will be able to attract new clients as long as they put up a shingle and have some software. Certification is just as important in a solo business as it is in a doctor’s office.
As is true with many fields, you will generally make more money if you own your own business than if you are working for someone else. That being said, owning a medical coding business requires actively selling your services to attract new clients among other hassles. Plus there are certain personality traits you will need to have to effectively start, and manage a business.
Angie Boss is an award-winning health industry writer and author or co-author of several books, including Before Your Time: Living Well with Premature Menopause (Simon and Schuster, 2010). She received a Bachelor's of Arts degree in Sociology and Journalism from Virginia Wesleyan College and a Masters of Pastoral Counseling from Union Theological Seminary.
