Healthcare

How to Become a Medical Coder

HealthcareOctober 04, 2024

Physicians’ offices in the U.S. handle about 1 billion patient visits annually, according to the latest data from the Centers for Disease Control and Prevention (CDC). And Statista reports that there are roughly 34 million hospital admissions each year.

All of these visits and admissions generate a massive amount of data — physicians’ notes, diagnostic results, services performed, medications administered — which is digitized and converted into standardized codes by medical coders. Insurance companies and healthcare providers rely on this encoded data for reimbursement and to ensure high-quality care, making medical coders vital to the healthcare sector.

With employment opportunities in this field expected to grow over the next several years, this is an excellent time to consider a career as a medical coder. To determine if this career path is a good fit, prospective coders should explore the role’s responsibilities and how to become a medical coder.

What Does a Medical Coder Do?

Every time a patient sees a healthcare provider, the data generated from those visits — vital signs, diagnoses, test results, procedures — follow that patient through subsequent appointments and treatments. Therefore, it is essential that this information can be easily accessed and understood.

Medical coders translate patient data into universally recognizable codes, enabling healthcare providers to understand a patient’s condition and provide suitable treatment. Insurance companies also use medical codes to process claims, ensuring that payments are distributed accurately and efficiently. Medical coding is sometimes used to record population health statistics as well.

Although job descriptions can vary from employer to employer, some common responsibilities of medical coders include the following:

  • Examining patients’ records to verify their timeliness, completeness, and accuracy

  • Assigning clinical codes for patient data, such as diagnoses and procedures

  • Recording and organizing data for analysis, retrieval, and reporting

  • Acting as a liaison between healthcare providers and insurance companies

  • Analyzing records for insurance claims

  • Identifying coding and billing discrepancies

  • Complying with medical coding policies and guidelines

  • Maintaining confidentiality of patients’ records

In addition to reviewing and encoding medical data, medical coders may also act as gatekeepers, ensuring that only authorized individuals can access patient files. Safeguarding patient privacy, as outlined by the Health Insurance Portability and Accountability Act (HIPAA), is one of the most important responsibilities of medical coders.

Where Do Medical Coders Work?

The majority of medical coders work for hospitals and physicians’ offices, according to the U.S. Bureau of Labor Statistics (BLS). However, coders can also work in a variety of other settings, including:

  • Insurance agencies

  • Government agencies

  • Outpatient clinics

  • Educational institutions

  • Healthcare consulting services

  • Law firms

Additionally, thanks to HIPAA-compliant software that enables remote access to electronic health records, some coders can work from home.

Steps to Become a Medical Coder

There is no one-size-fits-all pathway to becoming a medical coder. However, aspiring coders can take some key steps to boost their job prospects.

1. Earn a High School Diploma

A high school diploma or a similar credential, such as a GED certificate, coupled with some practical experience in a healthcare setting, is generally considered the minimum requirement to qualify for a medical coding job. Some employers prefer candidates with some form of postsecondary education and/or professional certification.

2. Pursue Postsecondary Education

Aspiring medical coders can greatly benefit from completing a postsecondary education, such as an associate degree or a certificate program. These programs help students further develop their knowledge and skills, covering topics such as medical terminology, health policy, data analytics, and office management as well as medical coding techniques. Completing postsecondary education can help candidates stand out to employers in a competitive job market.

3. Get a Professional Certification

Earning a professional certification is not always required for medical coders, but some employers may prefer to hire candidates who have one. Certifications such as the Certified Billing and Coding Specialist (offered by the National Healthcareer Association) and the Certified Coding Associate (offered by the American Health Information Management Association) can help improve a prospective coder’s job prospects. Getting certified allows individuals to further hone their skills and expertise and demonstrates to potential employers their abilities and commitment to the field.

4. Develop Key Skills

Individuals will need to develop certain fundamental skills to excel on their path to becoming a medical coder. Those skills include:

  • Understanding of medical terminology: Coders need to be able to decipher the medical terminology contained in patients’ records, which is often complex, and translate it into medical codes. A fundamental understanding of human anatomy, diseases, medical conditions, and treatments is crucial.

  • Analytical skills: Coders closely examine patients’ records to identify relevant information, such as medical procedures or diagnoses. Analytical skills can also aid coders in performing audits and validating the accuracy of patient data.

  • Attention to detail: A detail-oriented mindset enables coders to be precise when verifying and coding patient information. It can also help them identify discrepancies in billing and coding.

  • Ethical attitude: Medical coders handle confidential patient data, so it is essential that they exercise discretion when accessing and encoding this information. An understanding of and adherence to administrative, ethical, and legal requirements is crucial to protect patient privacy.

Job Outlook for Medical Coders

Healthcare is one of the fastest-growing sectors of the U.S. economy. Increasing demand for medical services — driven by factors such as an aging population and rising rates of chronic conditions — will likely result in a growing need for a wide range of healthcare professionals over the next decade, including medical coders.

According to BLS projections, employment of medical records specialists will grow by 8% between 2022 and 2032, adding roughly 16,500 new jobs to the workforce. About 15,000 job openings are expected each year, on average, during that period.

As patients continue to visit clinicians’ offices in greater numbers, coders and other medical records professionals will be needed to translate patient data into standardized codes for insurance reimbursement and other purposes.

The BLS expects similar occupations to experience strong demand as well, projecting 16% job growth for health information technologists and medical registrars, and 28% growth for medical and health services managers. These are considered more advanced roles, which medical coders can ascend to with additional education and experience.

Launch Your Healthcare Career

Generally working behind the scenes, medical coders are vital contributors to the healthcare industry. Their work facilitates high-quality care, helps protect patient privacy, and aids in the processing of medical claims.

In light of the growing demand for medical records professionals, now is an excellent time to pursue an education that can help you launch your career in this field. The Medical Billing and Coding training programs at Fortis can help you gain the knowledge and skills you need to become a medical coder. Our comprehensive curriculum focuses on experiential learning, guiding students through real-world situations to prepare them to work in a variety of settings.

Learn how we can help you begin your professional journey in healthcare.

Recommended Readings
How to Become a Medical Lab Technician
Best Places to Work as a Medical Assistant
5 Tips to Handle Workplace Stress in a Busy Medical or Dental Office

Sources:
AAPC, What Is Medical Coding?
American Health Information Management Association, Certified Coding Associate (CCA®)
Centers for Disease Control and Prevention, Ambulatory Care Use and Physician Office Visits
Indeed, “How to Get Certified as a Medical Coder in 6 Steps”
Indeed, “What Is a Medical Coder? (With How to Become One and Skills)”
National Healthcareer Association, Certified Billing & Coding Specialist (CBCS)
Statista, Total Number of Hospital Admissions in the U.S. From 1946 to 2022
U.S. Bureau of Labor Statistics, Health Information Technologists and Medical Registrars
U.S. Bureau of Labor Statistics, Medical and Health Services Managers
U.S. Bureau of Labor Statistics, Medical Records Specialists