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What is Medical Billing and Codes

Posted on July 9, 2011 | No Comments
Shawn Manaher asked:




Getting a doctor bill can be somewhat confusing if you do not understand where all the charges on the invoice came from. To understand what is medical billing and codes sometimes feels like a daunting task. Hopefully giving you a little information, this task will feel a little more manageable.

Basically, a doctor’s visit in an office generates a paper trail from the office manager or billing staff with a coded information that is forwarded on to your insurance company or third party provider. Sometimes you receive two or three bills from the same date of service. Any testing your doctor or nurse may have done while you were in the office was probably forwarded on to a lab or separate doctor for evaluation. Health care providers may have preformed services for you and you may never have met them. Some of the services may include lab blood and urine analysis work, x rays, consultations; these services would require technicians and or Doctors that evaluated the results. Medical codes for these services have to be entered for all the people involved in your office visit so they can get paid from your insurance company or other health coverage provider.

Medical billing is a very important part of the entire health care system. Doctors’ offices sometimes are outsourcing these tasks to improve on direct patient care. The time it takes to correctly enter the codes can be very time consuming. If there are incorrect code entries, it can prevent payments. Also billing and over due billing is an important part of the process. The office manager is responsible for ensuring correct entries for billing procedures.

Hospital visits incur much more detailed paper work that many times take away from patient care time. Outsourcing for medical billing is common place for hospital and clinics. Medical billing needs are so in demand the schools specializing in this field are on the rise offering many opportunities for people. The codes for medical billing generate payments to diagnostic related groups, managed care groups such as HMO or PPOs, private insurance companies, and government insurance such as Medicare and welfare. The coding has to include an explanation of benefits that will go back to the doctors and you outlining what is covered and what is not.

Understanding what medical billing and coding is can be challenging. When you receive a bill in the mail if you do not understand you can always call and request additional information. For those working in this field is a constant challenge to stay informed of new regulations and procedures. As a career path, it can offer a rewarding as well as to provide excellent pay and benefits. What is medical billing and coding? The answer is a career, the way your bill is prepared and often a complex system of filling out forms for the medical practice to receive payment.

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