6 Observations About Medical Coders

Quality medical coders can provide an invaluable service to physician practices, hospitals and ambulatory surgery centers by decreasing denials, speeding up the reimbursement process and ensuring legal compliance. Here are six observations about the work, wages and responsibilities of medical coders, based on data from AAPC's 2010 Salary Survey and 2008 Work of a Coder Survey.

1. Most coders are paid by the hour, and wages vary based on background. The majority of coders (67.4 percent) report that they are paid by the hour, with salaried coders coming in a distant second at 30.3 percent. According to AAPC's 2010 Salary Survey, medical coder salaries differ significantly based on education, credential, years of experience and job definition. Unsurprisingly, coder salaries increased in a generally linear fashion based on years of experience, with certified coders earning more than non-certified coders at every stage of their career. The least experienced coders — those with one year of experience — earned an average of $34,551, while certified coders with more than 25 years of experience earned an average of $53,669. Coder salaries could also jump between $500 and $3,500 with an additional year of experience.

Higher degrees commanded higher salaries in most cases, though coding certification seemed to have more of an influence. For example, the survey found that coders with some high school education and a coding certification could earn $39,167, which was more than non-certified coders with some high school, high school, technical school, some college or an associate's degree. Salaries also differed depending on job definition — with the highest-paid jobs involving consulting — and type of workplace. The most profitable place to work was a payor organization, a location that interestingly staffs only 3.3 percent of all coders, according to the survey.

2. Coders report a positive relationship with physicians.
Coders and physicians must often work together to ensure coding accuracy, since clear, thorough physician documentation is essential for choosing the correct codes. Luckily, the vast majority of coders (82.4 percent) reported a positive relationship with their physicians, suggesting that documentation snags can be handled with ease and professionalism in most facilities.

Coders were divided on physician knowledge of coding and compliance rules — while 42.1 percent agreed that their physicians had a "solid knowledge" of the rules, another 32 percent felt that physicians were lacking in expertise. Fortunately, more than half of coders said that physicians in their office welcomed discussions regarding their documentation shortcomings.

3. Facilities prefer certified coders — and most facility coders are certified. It is unsurprising that coding certification is highly valued in most facilities. More than 67 percent of coders said their employer had a preference for hiring certified coders, and most employers were willing to spend money to help coders achieve certification. More than half of coders said their employer paid membership and testing costs associated with professional coding credentials, and another 67 percent reported that their employer paid for CEUs to keep coder knowledge up-to-date.

This strong preference for certified coders in medical facilities means that most coders are certified, according to the survey results. Nearly 70 percent of coders said that most of the coders in their office were certified, and 89.9 percent of coders reported that they held a CPC certification. CPC was by far the most common certification, followed by CPC-H, CCS, CCS-P and CPC-P.

4. Practice physicians regularly perform coding duties.
In the Work of a Coder survey, 56 percent of respondents said that their physicians perform coding duties in the practice. Among the physicians who code, 91 percent were responsible for selecting E/M codes and 71 percent were responsible for selecting ICD-9-CM codes. Despite the prevalence of coding among practice physicians, most coders reported that their providers did not have a formal coding education: Only one-third of coders indicated that their physicians had a formal coding background, and 11 percent strongly disagreed that their providers were trained in coding.

The lack of formal coding education may not matter for physicians, though. Most coders said that in lieu of formal education, physicians used CPT code "pick-lists" or "cheat sheets" to improve coding accuracy, and many said that physicians generally expected coders to review and correct any errors. Around half of coders agreed that coding performed by their physician saved the coding staff time and enhanced clinical accuracy of codes reported, and 52.6 percent said coding performed by their provider met compliance requirements. Reimbursement seemed to be the biggest issue associated with provider coding: 37.2 percent of coders (the highest percentage for any response) said that coding performed by a provider did not enhance reimbursement.

5. Compliance risks are the biggest issue for coders. Qualified, experienced coders can have a drastic effect on a physician practice or medical facility. According to the AAPC survey results, quality coding has the biggest effect on reduced risks associated with noncompliance, a serious issue for facilities that want to avoid legal action and embarrassing public attention. Over half of coders also believed that quality coding was extremely important to producing fewer denials, an important issue since denials slow down the reimbursement process and increase days in A/R. Similarly, over half of coders believed that sound coding increased the speed of reimbursement for facilities.

6. More coders work in physician practices than any other setting. According to the AAPC survey, most coders report working in a small physician practice (1-9 physicians) or a large physician practice (more than 10 physicians) than any other facility type. Around half of all coders (49.2 percent) worked in physician practices, with outpatient hospitals, billing companies and other workplaces following as the next most popular workplaces.

Read more about AAPC.

Related Articles on Coding, Billing and Collections:
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Drug Code Changes Included in July HCPCS Level II Updates
Orthopedic Coding: 4 Tips for Knee Injuries and Conditions

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