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.
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.
The medical coding salary for freshers depends on several factors, some of which are listed below.
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.
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.
Experienced coders are paid more due to several reasons, such as;
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 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.
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.
The entry-level salary for medical coders can vary depending on the type of employer or healthcare industry you work for.
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