Haris Ashley
Medical billing and coding professionals are in high demand due to the increasing need for healthcare services and the use of electronic health records. These professionals are responsible for assigning codes to diagnoses and procedures and managing reimbursement within various healthcare settings. While salaries can vary depending on location, employer type, and certifications, the average annual salary for medical billing and coding professionals is around $50,000 to $60,000. However, those with specialized certifications and advanced degrees can earn significantly more, with salaries exceeding $80,000 per year.
| Characteristics | Values |
|---|---|
| Median annual salary | $48,500 - $53,690 |
| Median hourly salary | $22.43 - $25.82 |
| Top 10% annual salary | $77,810 |
| Bottom 10% annual salary | $35,080 |
| Salary by location | Varies substantially. The Pacific region (including Alaska, California, Hawaii, Oregon, and Washington) offers the highest median salaries. |
| Salary by employer | Large health systems pay the most, followed by large physician group practices and hospitals. Insurance agencies tend to pay more than medical and surgical hospitals, which are in turn above the lowest-paying employers, physician's offices and outpatient care centers. |
| Salary by experience | More years of experience lead to higher salaries. |
| Salary by certification | Certified coders earn more than non-certified coders. Entry-level certifications like CPB and CPC have median incomes of $56,981 and $58,895, respectively, while more specialized certifications like COC and CRC have median incomes exceeding $64,000. |
| Salary by education | Higher levels of education lead to higher salaries. |
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What You'll Learn
Location: Salaries vary by state and city
Location is one of the most significant factors in determining the salary of a medical biller and coder. The average salary for this role in the US is $50,250 per year or $24.16 per hour, according to the Bureau of Labor Statistics (BLS). However, salaries can vary significantly depending on the state and city. For example, in Washington, D.C., medical billers and coders earn $70,900 per year, while in Corpus Christi, Texas, they make $47,130 annually, which is 14% less than the national average.
State economies, cost of living, and demand for services all play a role in salary variations. The West Coast, including Alaska, California, Hawaii, Oregon, and Washington, offers the highest median salaries for medical records and health information specialists, with an average of $71,550 per year. Within states, salaries can also differ between cities. In Texas, for instance, billers and coders in the major cities of Dallas and Houston earn $59,662 and $61,427 per year, respectively, while those in Corpus Christi earn significantly less.
Metropolitan areas tend to pay higher wages, with San Jose—Sunnyvale—Santa Clara, California, topping the list at an average salary of $83,150. Additionally, certain cities are known for paying above-average salaries, such as Kokomo, Indiana, where the average salary is $78,567, and Morgantown, West Virginia, where billers and coders earn $60,147 annually.
It is worth noting that salaries can also vary depending on the specific employer and the industry they belong to. Large health systems, for instance, tend to pay higher wages, while physician's offices and outpatient care centers typically offer lower salaries. Furthermore, the type of employment, such as full-time or part-time work, can also impact earnings.
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Experience: More experience typically means higher pay
Experience is a crucial factor in determining the salaries of medical insurance billing and coding professionals. While certifications and education play a significant role in increasing earning potential, years of experience can have an even greater impact.
According to Payscale, the average salary for medical billers and coders is $50,147 per year or $21.26 per hour. However, this amount can vary based on years of experience. With more experience, professionals can negotiate higher salaries and command better pay packages.
The Bureau of Labor Statistics (BLS) reports that medical records specialists, which include medical billers and coders, earn an average of $53,690 per year or $25.81 per hour. This figure can be influenced by factors such as experience, with experienced professionals potentially earning significantly more. In California, for example, the average hourly rate for medical billers is $23.45, but this may not reflect the earning potential of experienced professionals in the state.
The relationship between experience and salary is further emphasized by data from the American Academy of Professional Coders (AAPC) and the American Health Information Management Association (AHIMA). The AAPC reports that earning a bachelor's degree can increase annual salaries by approximately 10.2%, while a graduate education can boost earnings by up to 28.2% compared to coders without post-secondary education. Additionally, the AHIMA's salary survey reveals that income can increase by up to 63% throughout a career, demonstrating the impact of experience on earning potential.
Pursuing advanced certifications and credentials can also enhance career prospects and salary growth. Professionals with specialized certifications, such as the Certified Outpatient Coder (COC) or Certified Risk Adjustment Coder (CRC), tend to have higher median incomes exceeding $64,000. The highest median income in this field, according to the data, belongs to the Certified Professional Compliance Officer (CPCO), with an impressive annual salary of $81,495.
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Education: A college degree and postsecondary certification can increase earnings
While a high school diploma is all that is required to become a medical billing and coding specialist, a college degree and postsecondary certification can increase earnings. The median salary for medical billing and coding specialists is $62,160, but salaries vary depending on location, level of education, years of experience, work environment, and other factors.
According to the AAPC, non-certified coders earn an average salary of $61,022 per year, while coders with three AAPC certifications earn an average of $66,186 per year. The AAPC's 2024 Medical Coding and Billing Salary report shows a 9% increase in salary from 2022 to 2023 for postsecondary degrees, the largest compensation hike year-over-year since the survey's conception in 2008.
Medical billing and coding specialists with a bachelor's degree earn an average annual income of $66,500. This salary increases to $81,500 with a master's degree or higher education. Medical records professionals with no postsecondary education on average earn $58,550 per year — about 28% less than their peers with advanced degrees.
In addition to a college degree, certain certifications can also increase earnings. For example, the primary medical billing certification is the CPB, which stands for Certified Professional Biller. According to the AAPC, non-certified billers and coders perform the same work as their certified coworkers but earn 16.6% less. The average salary of a certified professional biller is $60,320 annually.
Another example of a certification that can increase earnings is the Certified Professional Coder (CPC) credential, which recognizes expertise in physician-based or pro-fee coding. The CPC credential can lead to careers in physician practices, medical offices, walk-in clinics, labs, and telehealth companies, among others.
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Certifications: Certified coders earn more than non-certified coders
The median average salary for medical billing and coding in the US is $50,250 per year or $24.16 per hour, according to the Bureau of Labor Statistics (BLS). However, salaries vary depending on several factors, including location, level of education, years of experience, and work environment. For example, medical billers and coders in Washington, D.C., earn $70,900 per year, one of the highest salaries in the nation.
Location is one of the most significant variables in determining earnings, as each state and city in the US has its own economy and cost of living. The West Coast, including Hawaii and Alaska, offers the highest median salaries for medical records and health information specialists, which include billers and coders. The San Jose-Sunnyvale-Santa Clara, CA metro area tops the list with an average salary of $83,150.
Certification is another critical factor influencing salary. Certified coders earn significantly more than their non-certified counterparts. According to the AAPC, non-certified coders earn an average salary of $61,022 per year, while coders with three AAPC certifications earn an average of $66,186 per year, an 8.5% increase. This increase in earnings is due to the higher level of knowledge and skill that certified coders possess, making them more attractive candidates for employers.
Pursuing advanced credentials and certifications in specialty areas can further increase earning potential. AAPC reports that a bachelor's degree can add approximately 10.2% to a coder's annual salary, while graduate education can boost earnings by up to 28.2% compared to coders with no post-secondary education. Additionally, specific certifications, such as the Certified Inpatient Coder (CIC) credential, can lead to even higher salaries.
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Workplace: Large health systems pay the most
Workplace size and type are significant factors in determining the salaries of medical billing and coding professionals. Large health systems, including health organizations and large group practices, consistently offer higher wages to medical billers and coders. This is due to the larger volume of patients and administrative work typically associated with larger healthcare providers.
According to the AAPC, large health systems pay their medical billing and coding specialists approximately 20% more than solo physician medical offices or small group practices. The AAPC's 2024 survey also revealed a 9% increase in salary from 2022 to 2023 for those with postsecondary degrees, the largest compensation hike since the survey began in 2008. The AAPC's data further highlights that income for medical coding professionals tends to increase with employer size.
The average salary for medical billing and coding professionals in large health systems is $64,670. However, salaries can vary depending on location and cost of living. For example, medical billers and coders in Washington state earn an average of $64,250, while those in Mississippi make $42,440. Additionally, certain regions, like the Pacific region (including Alaska, California, Hawaii, Oregon, and Washington), offer higher average salaries of $71,550 per year.
While large health systems pay the most, other factors can also influence earnings. For instance, medical coding professionals with certifications and advanced degrees can command higher salaries. The type of certification also matters, with specialized certifications often leading to higher pay grades. Furthermore, career longevity and experience play a crucial role in salary growth, with professionals earning up to 63% more after 30-plus years in the field.
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Frequently asked questions
The median salary for medical billing and coding specialists varies depending on factors such as education, experience, location, and type of workplace. The median annual salary for medical records and health information specialists was $50,250 in 2023 according to the BLS. However, the average annual salary for medical billing and coding specialists in California is $76,700, while in San Francisco it is $66,980.
Education and certification can significantly impact the salary of medical billing and coding specialists. Those with a bachelor's degree earn an average of $66,500 per year, while a master's degree or higher education can increase the average salary to $81,500. Additionally, certifications such as the Certified Inpatient Coder (CIC) accreditation can result in an 11% increase in compensation.
The type of care facility and the size of the practice can also impact the salary. Large health systems and hospitals tend to pay higher salaries than small physician's offices. Furthermore, insurance agencies tend to pay billers and coders the most, while salaries are lowest in outpatient care centers and physicians' offices.
