Medical Billing and Coding Salary Guide
The median average medical billing and coding salary is $47,180 per year or $22.69 per hour, according to the Bureau of Labor Statistics (BLS), but many things impact how much you can earn. Medical billers and coders in New Jersey, for example, earn $68,500 per year, which is much higher than average.
And according to the AAPC, certified coders earn 17% more than non-certified coders. In this guide, we'll dig into medical billing and medical coding salary factors including how much you can make in each state, the highest paying cities, and how salary changes for medical coders and billers depending on where you work.
Medical Billing and Coding Salaries
Salaries for medical coders and medical billing specialists vary based on a number of factors. AAPC These factors include specialization, certification, location, type of workplace, and experience.
With those variations taken into account, the BLS found that the average median salary in 2021 for medical records and health information specialists was $46,660 per year, or $22.43 per hour.
Certification Increases Your Salary Potential
According to the AAPC, non-certified coders make an average salary of $46,321 per year while certified coders earn 17% more -- an average of $56,290 per year. Adding a second certification increases that average salary to $66,198.
Benefits
Most health information technicians also receive benefits packages that may include insurance, paid time off, sick leave, tuition reimbursement, and more.
Medical Billing and Coding Salary by State
Each of the United States has its own economy, cost of living, and average salary. Location is one of the greatest variables in determining medical billing and coding salaries.
The chart below shows the average salary of medical billers and coders in each state per the AAPC.
Medical Billing & Coding Salaries by State
Data from ZipRecruiter
Highest Paying States for Medical Billers and Coders
According to the BLS, the states where medical billers and coders can earn the most money are:
- New Jersey - $68,500 per year, $32.93 per hour
- California - $68,850 per year, $31.66 per hour
- District of Columbia- $63,740 per year, $30.64 per hour
- Hawaii - $61,190 per year, $29.42 per hour
- Connecticut - $60,410 per year, $29.04 per hour
Highest Paying Cities for Medical Billers and Coders
In addition to state salaries, it's also important to consider how salaries vary by city. The five metropolitan areas with the highest annual mean salaries for medical coding and billing, according to the BLS are listed below.
- Sacramento--Roseville--Arden-Arcade, CA - $73,810 per year, $35.49 per hour
- San Francisco-Oakland-Hayward, CA - $73,800 per year, $35.48 per hour
- San Jose-Sunnyvale-Santa Clara, CA - $71,090 per year, $34.18 per hour
- Los Angeles-Long Beach-Anaheim, CA - $67,880 per year, $32.63 per hour
- Stockton-Lodi, CA - $67,490 per year, $32.45 per hour
Medical Billing and Medical Coding Salaries by Place of Employment
Compensation for medical billers and coders is also determined by the type of care facilities they work in. For example, employment at large group practices often comes with greater reimbursement than positions in small physician's offices.
While large health systems are likely to pay higher salaries and offer more generous benefits packages, salary is also affected by whether a health information specialist chooses to work within their employer’s physical location or prefers to telecommute. The latter is becoming increasingly popular as telehealth technology improves.
Below are the AAPC’s latest salary survey results, detailing the average annual salary for common medical billing and coding workplace.
- Health System - $59,129
- Large Group Practice (50+ physicians) - $56,548
- Hospital Inpatient and Outpatient - $56,477
- Medium Group Practice (11-49 physicians) - $50,896
- Solo Practice/Small Group Practice (1-10 physicians) - $50,709
How to Increase Your Salary as a Medical Coder or Biller
Changing location and facility are not the only ways to increase salary as a medical coder or biller. These healthcare professionals can also receive higher pay by:
- Gaining experience
- Furthering your education
- Certifications and credentials
Gain Experience
One of the many advantages of this field is that it’s quick to enter. Medical coders and billers can gain experience while pursuing further education and certifications in specialty areas.
Further Your Education
Having a college education – whether an associate degree or some college-level classes – will add approximately 2.73% to your annual salary, according to the AAPC. A bachelor’s degree or master’s degree will add significantly more.
Add Certifications and Credentials
Pursuing advanced credentialing is even more important than higher education. Professionals who pursue this level of validation of their knowledge provide their employers with confidence in their expertise and proficiency. There are several paid and free online medical billing and coding certification programs for you to choose from.
The AAPC reports that the average coder's salary boost from increased credentials is about 3%. However, coding specialists who have earned the Certified Inpatient Coder (CIC) credential reportedly earn over 7.67% salary increases.
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Getting Started in Medical Billing & Coding
The quickest way to enter this career field is by attending a 4-week online course for medical coding and billing. The next shortest program is still quite speedy at just 16 weeks.
In order to start a career in medical billing and coding, these are the basic steps you'll need to take:
- Earn a high school diploma or equivalent
- Gain experience
- Pursue continuing education
- Pursue certifications
Getting a Degree
Those interested in a career as a medical coder or medical biller can get started in the profession within a year. In-person and online programs are available on an ongoing basis and can often be completed full-time or part-time. This allows the flexibility to continue working while taking courses.
To become a medical coding career, all that’s required is a high school diploma or equivalent degree. Entry-level medical coder training is available through community colleges and standalone certification programs.
Getting Certified
There are significant benefits to earning certifications, including expanded career opportunities and higher salaries. After a few years of experience and exploring specialties within coding, it’s a good idea to pursue additional coding certification, such as taking the Certified Professional Coder (CPC) exam, to become even more valuable and pave the way for advanced coding jobs.
After completing coursework and earning certifications, the next step is to prepare a resume. Identify your strengths, experience, and education and apply to positions that suit your goals.
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Medical Billing & Coding Resources
For more information on getting into medical billing and coding, check out our other helpful articles and guides!
- How to Become a Medical Biller or Coder
- This is Why I Started a Medical Billing and Coding Business
- Medical Coding and Billing Careers
- Top Medical Billing and Coding Schools
Is it Worth it to Become a Medical Biller or Coder?
Many people wonder if becoming a medical biller or coder is worth the cost of education and if the career will provide a good quality of life. As with any profession, it's always a great idea to talk to people in the profession before making a leap into the career.
The top medical billing and coding programs in the country cost anywhere from $5,000-$21,000. This means that the education to become a medical biller or coder is significantly less than the profession’s median annual salary of $47,180 per year, according to the BLS.
In addition, while salaries vary nationwide, the AAPC reports that medical billing and coding professionals earn above their state’s median annual income in most cases. This may relieve people wondering if they can make enough money to live and support their families.
However, it is essential to research how much professionals earn in your state and city. In some cases, it may make sense to relocate to a higher-paying area.