Monday 27 February 2012

What is the Best State to Become a Medical Billing and Coding Specialist?


“Go West, young man, and grow up with your country,” wrote John B.L. Soule in his 1851 editorial during the expansion of the west. The Bureau for Labor Statistics reports that in 2008, the annual salary for a medical billing and coding specialist ranged anywhere from $20,440 to $50,060. Keeping that range in mind, what is the best state to head to if you want to become a medical billing and coding specialist? Soule’s original statement to head west is not too far from the truth.

Salaries State by State

In 2008, the American Health Information Management Association (AHIMA), conducted a salary study of around 11,000 medical billing and coding specialists. The study found that geography was a key factor in salaries. The states with the highest compensations were:
  1. California
  2. The District of Columbia
  3. Massachusetts
  4. Connecticut
Nearly 24 states had compensations less than expected. The states where salaries for medical billing and coding specialists show no real change are usually larger states that have both urban and rural areas. The reason these states show no change is because the averages are balanced out by the highest and lowest salaries. The map is available at AHIMA’s website.
The American Academy of Professional Coders (AAPC) conducted a similar salary survey in 2010 for medical billing and coding specialists. Its results were similar. The top four states were:
  1. California
  2. Maryland
  3. New Jersey
  4. Massachusetts
Both studies put California and Massachusetts in their top four.

Region by Region

The AAPC also broke down the salary ranges into nine sub-regions from highest to lowest:
  1. Pacific sub-region – $51,428
  2. Mid Atlantic sub-region – $46,690
  3. New England sub-region – $46,574
  4. Mountain sub-region – $44,617
  5. South Atlantic sub-region – $42,565
  6. West South Central sub-region – $42,078
  7. East North Central sub-region – $41,431
  8. West North Central sub-region – $40,897
  9. East South Central sub-region – $39,626
The Pacific sub-region, which has the highest medical billing and coding specialist salaries, includes Alaska, Hawaii, Washington, Oregon, and California. The East South Central sub-region, which has the lowest salaries, includes Kentucky, Tennessee, Mississippi, and Alabama.

The Cost of Living

After looking at the salary results for medical billing and coding specialists, you might be ready to pack your bags and move. Certainly, if you live in a state like Maine, Michigan or Oklahoma, where the compensation is lower than expected, you are probably thinking about moving west to California, or maybe east to Massachusetts. Before you load the moving truck, consider the possible change in living costs in another city or state.
CNNMoney developed a very helpful online tool that can be used to compare the cost of living in two different cities. By entering your current city, your destination city and your current salary into the calculator, you can learn what will cost more and what will cost less in another city. The calculator gives you cost information on the following:
  1. Groceries
  2. Housing
  3. Utilities
  4. Transportation
  1. Healthcare
Weigh these changes in the cost of living against the compensation you will receive as a medical billing and coding specialist before choosing to move. This will help ensure that you are making the right choice about what is the best state to become a medical billing and coding specialist.

Other Salary Factors

Other factors which can affect the salary of a medical billing and coding specialist include certification, level of education, and experience. Geography is only one of several factors you should consider if you are planning on moving.

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