Remote Medical Coding Jobs

Remote medical coding jobs are usually contract positions. This means home based coders must contract with an organization as an "independent contractor" . The organization they contract with will provide the medical coder with medical charts to code and pay them (usually per. chart) for their work.

Contracts should specify things like:

~ Number of Charts coded and Accuracy Standards
~ Payment
~ Benefits/Vacation/Time off
~ Software/Hardware Responsibilities
~ Taxes
~ HIPAA Compliance

The number of charts a remote medical coder should be expected to code will vary according to their specialty. For example, an out patient or professional coder may be expected to code more charts per hour than an in patient or facility coder.

The specialty an individual codes may also effect the rate an individual is expected to code at. For example, a standard average for individuals coding emergency medicine is around 25 charts an hour.

One productivity projection uses the following target:

Coding Specialist I:
45 inpatient records daily
2 min/chart or 250/day outpatient and ER records
3.5 min/chart or 130/day ambulatory surgery records

Coding Specialist II:
32 inpatient records daily
2 min/chart or 250/day outpatient and ER records
4 min/chart or 120/day ambulatory surgery records

Coder II:
23 inpatient records daily
3 min/chart or 160/day outpatient and ER records
6 min/chart or 80/day ambulatory surgery records

Coder I:
15 inpatient records daily
4 min/chart or 120/day outpatient and ER records
8 min/chart or 60/day ambulatory surgery records

Although rates may vary by specialty it is important that the rate is addressed in the contract prior to accepting a remote medical coding job. Rates can be addressed by stating the number of charts the company will provide and/or the medical coder will code on either an hourly, daily, weekly, or monthly basis.

In addition to the rate an accuracy standard should also be disscuessed. Most organizations contracting with an independent medical coder will specify that the contract will be upheld as long as the medical coder maintains a specific standard.

Most accuracy rates vary in between 94% - and 98% accuracy. This means that charts that are coded and submitted by the home based medical coder will be reviewed by the organizaitons auditing team to ensure that they are being coded correctly.

As long as the accuracy standard is maintained by the coder the contract will continue. It is important that when starting out in a a remote medical coding job that you understand what type of standard is required of you and how to maintain it.

Payment is typically a flat rate. This rate is then usually paid on a per. chart basis. Pay rates are strongly influenced by many factors such as geographical location, experience and education held, and current economics.

A fair average to aim for in contract negotiations may be

Professional Coding/Outpatient:.60 - .75 per chart

Facility Codin/Inpatient:.70 - .85 per. chart

Combination Coding/Both In and Outpatient:.90 - 1.50 per. chart

Traditional benefits such as medical, dental, and 401K contributions don't really exist when you are an independent contractor.

Because you are "self employed" you are in charge of providing your own medical/dental coverage and creating your own retirement plan.

Vacation and paid time off are also not usually a given. Although many remote medical coding jobs do allow medical coders to take time off it is often unpaid.

The two most common options used to address this issue are:

~ Increasing productivity prior to or following your leave
~ Adjusting your personal budget to absorb the absence of pay

Some organizations that contract with independent coders allow the individual to code extra medical charts prior to their time off or following their return. This agreement can be useful when trying to avoid financial disruptions but the extra time needed to code extra charts does need to be properly allotted for.

Other organizations may not make extra medical charts available for their coders, but they do usually approve some time off. Since the time off is usually unpaid the coder should anticipated this and properly budgeted for the lack of income.

When holding a home based medical coding job and contracting with an outside organization it is important to be aware of each parties responsibilities. These responsibilities should also be clearly stated in the contract prior to the agreement.

When an organization agrees to contract with a medical coder they usually provide the coder with the medical charts, software for coding and submitting the medical charts, and some technical support.

Independent contracts are usually responsible for having a reliable computer, internet connection, and medical coding books.

Technical support offered by the organization is usually limited to their software, e-mail, and firewall. Issues regarding internet service disruptions and computer failures are usually the responsibility of the medical coder.

Since independent contractors are considered to be self employed they also file different taxes than an hourly employee would.

The organization that a medical coder contracts with will pay the coder according to their contract, but in their gross earnings. That is, the organization will not withhold any taxes from the check. The responsibility of withholding taxes is the remote medical coder's responsibility.

Tax money should be calculated and put aside with each check for payment at tax time. Also, at the end of the year the contracted organization will send the coder a 10-99 instead of a W-2 for tax purposes.

When filing taxes the coder will then need to file a schedule 1040. Taxes will need to be calculated including both the amount due and any deductions.

Deductions on a schedule 1040 can include items such as the cost of the medical coding books, internet connection, computer, office space and supplies. Keeping track of these items through out the year can be very beneficial when filing your taxes.

Privacy is a big issue in the medical community. People's personal information is available on each medical chart that the remote medical coder receives. Keeping this sensitive information private and protected is crucial.

Contracts may state the stipulations a medical coder must meet and agree to prior to being allowed to view the medical charts. Items may include virus protection on the individual's computer, permission in install the organization's firewall, password protection, and having a specific computer and/or office space that is available only to the coder.

Office spaces may also be required to have a door with a lock. In addition no direct view of the coder's computer screen should be available to someone out side of this work space. It is important to comply with HIPAA regulations as well as becoming educated regarding privacy breeches and who the responsibility may come back to.