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Medical Billing vs Medical Coding: What’s the Difference?
Medical billing and medical coding are two distinct but closely related functions in the healthcare industry, both essential for ensuring providers are reimbursed for patient care. Here’s how they differ:
Quick Facts
- More than 206,900 jobs in medical records and health information (coders + billers) in the U.S. in 2024, expected to grow rapidly.
- Remote work: Over 60% of new coders and billers reported having some remote or hybrid work in 2025.
- Certification matters: Professionals with certifications like CPC, CCS, or CBCS often earn $5,000–$15,000 more annually than non-certified peers.
Medical Coding
Purpose:
Medical coding is the process of translating diagnoses, treatments, medical procedures, and equipment into standardized alphanumeric codes, such as ICD (International Classification of Diseases), CPT (Current Procedural Terminology), and HCPCS (Healthcare Common Procedure Coding System).
Who Coders Interact With:
Coders mostly interact with patient medical records and healthcare providers. Their role often does not involve direct contact with patients or insurance companies.
Responsibilities:
- Review, analyze, and abstract information from patient records (like lab results, physician notes, or radiology reports).
- Assign appropriate codes to each diagnosis, service, or procedure performed.
- Ensure coding accuracy for correct billing, medical research, and patient data management.
Skills:
Strong attention to detail, knowledge of anatomy and medical terminology, and proficiency in coding systems.
Job Market:
The U.S. Bureau of Labor Statistics (BLS) forecasts a 9% growth in medical records and health information roles (including coders) from 2023 to 2033—significantly faster than the average for all occupations.
Salary:
- The median wage for medical billing and coding professionals is around $50,250 per year, or approximately $24.16 per hour, as of 2025.
- Entry-level: $30,000–$40,000.
- Experienced: $60,000 and up, with some specialists earning as much as $75,000, especially in high-demand states.
Market Size:
The global market for medical coding is expected to grow from $17.78 billion in 2024 to $19.13 billion in 2025, at a compound annual growth rate (CAGR) of 7.6%.
Trends:
The push toward digital health records, AI-powered coding tools, and the rise of remote jobs is transforming the field. Coders must adapt to new tech and regulations.
Impact:
Accurate coding is essential for provider reimbursement and compliance, prevents fraud, and supports health data analytics.
Medical Billing: Facts & Stats
Purpose:
Medical billing involves creating and submitting claims to insurance companies or government agencies based on the codes provided by medical coders, with the goal of obtaining payment for services rendered.
Who Billers Interact With:
Billers communicate directly with patients, insurance companies, government payors, and sometimes healthcare providers.
Responsibilities:
- Compile all relevant coded data and patient information to create insurance claims.
- Submit claims and follow up on their status, handle claim denials, and resolve billing discrepancies.
- Manage payments, post patients’ charges, and process reimbursements.
- Ensure providers receive timely and proper payment.
Skills:
Communication, customer service, knowledge of insurance regulations, proficiency in billing software.
Job Market:
Billing roles are included in the 9% projected job growth for medical records and health information specialists.
Salary:
Billers, often grouped with coders, earn an average of $42,442 per year. Certified and experienced billers can earn significantly more, especially in high-demand locations or with remote opportunities
Trends:
Growth is fueled by an aging U.S. population, more complex healthcare billing systems, and widespread adoption of telemedicine. Remote billing positions are also increasing in 2025.
Key Differences: Medical Billing vs. Coding (2025)
Aspect | Medical Coding | Medical Billing |
Core Task | Converts procedures & diagnoses into standardized codes | Compiles codes into insurance/patient claims, follows up |
Stat Focus | $19.13B market in 2025; 9% job growth | $42,442/yr avg salary; 9% job growth |
Salary Range | $30,000–$75,000 | $30,000–$75,000 |
Workplace | Hospitals, clinics, insurance, remote | Hospitals, clinics, dental, telemedicine, remote |
Daily Tools | Coding manuals (ICD, CPT), coding software | Billing software, EHRs, insurance portals |
Main Skill | Detail orientation, medical terminology, code systems | Communication, negotiating, billing process |
Conclusion:
Medical coders turn healthcare services into codes; medical billers use those codes to generate revenue for providers. Both are in-demand and well-compensated healthcare administration careers, especially as digital health and telemedicine expand
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