How Much Can Medical Coders Make in the Beginning?

The healthcare industry has been growing at an unprecedented rate, and the demand for medical coders has also been on the rise. Medical coders play a crucial role in the healthcare system by ensuring that medical procedures and diagnoses are accurately coded for billing purposes and smooth revenue cycle management. As more and more people enter the field of medical coding, the question of average entry-level salaries becomes increasingly essential. If you are considering a career in medical coding, it is vital to understand what you can expect in terms of compensation. This article will deeply dive into the average entry-level medical coder salary, including factors that can influence your earning potential.

The Average Salary for Entry-Level Medical Coders?

There is no fixed salary for every medical coder; however, entry-level salary may range between $35,000 to $45,000. According to ZipRecruiter, an Entry Level Medical Coder in the United States makes an average salary of $40,481 per year as of March 14, 2023. In the USA, entry-level salaries begin at $37,050 annually.

Factors Affecting the Income

The medical coding salary for freshers depends on several factors, some of which are listed below.

Education

A medical coder’s education level is one of the most significant factors in determining their starting salary. Generally, the higher the level of education, the higher the salary.

According to the AAPC, medical records specialists without a university degree make an average of $26.13 per hour based on data from 2022. In contrast, those with some college or associate degree earn an average of $26.84 per hour. It would be an incredible decision to earn a bachelor’s, associate or Master’s degree because, according to AAPC, people with a Master’s degree are more likely to earn 10% more as compared to those who do not have a master’s degree.

Experience Makes a Difference

When it comes to medical coding, experience plays a critical role in determining how much a coder can make, especially in the beginning. According to the AAPC, an entry-level medical coder with less than a year of experience earns an average of $43,900 annually. However, they can earn higher salaries as their experience and skills grow.

• Experience level 1-4 years: According to PayScale, medical coders with 1-4 years of experience earn an average of $20.27 per hour or around $42,180 per year.
• Experience level 5-9 years: Those with 5-9 years of experience earn an average of $23.87 per hour or around $49,669 annually.
• Experience level 10 or more years: Medical coders with ten or more years of experience can earn even higher salaries, with some earning six-figure incomes.

Experienced coders are paid more due to several reasons, such as;

1. They are less prone to errors
2. Fewer errors mean more reimbursement
3. They are more professional and proficient
4. They understand the complexities of this field and handle them skillfully

Certifications Make it Rain

Becoming certified in medical coding can also impact an entry-level medical coder’s earning potential. Certified medical coders are often in higher demand and can earn higher salaries than those who are not certified. A study published in the Journal of Health Care Finance found that certified medical coders earn an average of $8,000 more annually than non-certified coders. According to the AAPC survey, 72% of employers require certification for medical coder positions.

Medical records specialist income trends based on the credential

Certified Professional Coder (CPC): $58,895

Certified Outpatient Coder (COC): $64,267

Certified Professional Coder-Payer (CPC-P): $62,494

Certified Inpatient Coder (CIC): $58,730

Certified Risk Adjustment Coder (CRC): $64,192

Certified Professional Coder-Instructor (CPC-I): $76,804

Soft Skills Standout

Soft skills are personal attributes that enable an individual to interact effectively with others. These skills include communication, teamwork, time management, problem-solving, and adaptability, to name a few. In medical coding, soft skills are critical because coders must communicate effectively with physicians, patients, insurance providers, and other stakeholders.

A study conducted by PayScale, a salary comparison website, found that medical coders with strong communication and problem-solving skills earn higher salaries than those without.

The study revealed that the median salary for a medical coder with excellent communication skills was $47,000 per year, compared to $41,000 for those with poor communication skills.

Similarly, the median salary for a medical coder with excellent problem-solving skills was $46,000 per year, compared to $40,000 for those with poor problem-solving skills.

Geographic location

Medical coding income trends based on location

So if you ask which state pays medical coders the most? Here is the answer.

State	Annual salary	Hourly wage
California	$67,660	$32.53
Alaska	$60,531	$23.79
Alabama	$49,481	$23.79
Florida	$58,020	$27.89
Iowa	$55,463	$26.66
Nebraska	$54,909	$26.40
New Jersey	$65,568	$31.52

The location-based salary differences in the medical coding profession can vary significantly due to several factors. These factors can include the following:

Cost of living

The cost of living in a particular area is a significant factor that influences the salary of medical coders. The cost of living index (COLI) measures the cost of housing, food, transportation, healthcare, and other essential goods and services in a particular location. Areas with a higher COLI tend to have higher salaries to compensate for the increased living expenses.

For example, Medical coders working in metropolitan cities, such as New York City, San Francisco, or Los Angeles, may earn more than those working in small towns or rural areas due to the higher cost of living in these regions.

Availability of Jobs

The availability of medical coding jobs is another significant factor influencing the beginning salary of medical coders. In areas with a high demand for medical coders, wages tend to be higher to attract and retain skilled workers. In contrast, salaries tend to be lower in areas with low demand for medical coders.
For example, Medical coders working in states such as California, Florida, and Texas, where the healthcare industry is thriving, tend to have higher salaries than those working in states with fewer job opportunities, such as Wyoming or Vermont.

Demand for Medical Coders

The demand for medical coders is another critical factor that influences the salary of medical coders. The demand for medical coders varies depending on the region and the type of healthcare facility.
For example, Medical coders working in hospitals or medical centers may earn more than those working in physician’s offices or small clinics due to the coding complexity required in these larger facilities.

What Kind of Healthcare Facility Pays the Most?

The entry-level salary for medical coders can vary depending on the type of employer or healthcare industry you work for.