Wednesday, August 4, 2010

What is Medical Coding?

Medical Coding is a language used by health insurance providers and doctors. It is system of numerical codes which document the patient’s illness as well as the care received.

Patients are usually unaware of the codes used in their file; this information generally stays between the doctor and the health insurance provider. These codes are a way of ensuring that the doctor is reimbursed by the patient’s health insurance for all services rendered.

Medical coding also helps to track the spread of diseases on a broad scale and detect epidemic outbreaks.

In 1996, the Health Insurance Portability and Accountability Act (HIPAA) mandated the use of medical codes. This mandate ensures patient confidentiality.