Function

Medical codes give insurance companies a way to evaluate the services given by a service provider to a patient.

Need

The process of medical coding facilitates the submission of a claim against the insurance policy of a recipient. This allows the recipient of the claim to be properly reimbursed by the insurance company.

Research

Medical codes are commonly used by governments (both local and national) and private health care companies for research purposes. They help both government and private health care companies evaluate the effectiveness of the treatment being given.

Systems

The main coding systems used by medical coders are CPT (Current Procedure Terminology) and HCPCS (Healthcare Common Procedure Coding System). The CPT codes were started by and are maintained by the American Medical Association. HCPCS coding is used by medical coders who work with Medicare and Medicaid.

Employment

Medical coders are employed at a wide variety of different businesses. These include home health care agencies, law firms, consulting firms, insurance agencies, medical billing and coding companies, hospitals, clinics, and by private doctors.

Source:

Medical Coding Career Guide

EICD: Medical Coding File Samples

Ahima.org: About Medical Coding & Medical Records: AHIMA

Resource:

BLS: Medical Records and Health Information Technicians