Medical Billing and Coding Salary in 2026: What to Expect by State and Experience Level

Medical Billing & Coding News
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One of the first questions people ask when considering a career in medical billing and coding is straightforward: what’s the pay? It’s a fair question, especially if you’re thinking about investing time and money into training. The short answer is that medical billing and coding offers a solid middle-class income with real room for growth — particularly once you’re certified and gain experience in a specialty area.

This guide lays out the actual numbers: national averages, how salaries vary by state, what certification does for your paycheck, and the specific factors that push earnings higher over time.

National Salary Overview

According to the Bureau of Labor Statistics (BLS), the median annual wage for medical records specialists — the category that includes medical billers and coders — was $50,250 in May 2024. That breaks down to roughly $24.16 per hour (BLS Occupational Outlook Handbook, 2024).

But the median only tells part of the story. The salary range spans from about $35,780 at the 10th percentile (typically entry-level, uncertified positions) to over $80,950 at the 90th percentile (experienced specialists in high-demand settings), according to the same BLS data. Where you land in that range depends on a combination of certification, experience, employer type, location, and specialization.

It’s also worth noting that the BLS projects 7% job growth for medical records specialists from 2024 to 2034 — classified as “much faster than average” compared to all occupations. That translates to roughly 14,200 openings per year over the decade (BLS Employment Projections, 2024–2034). This isn’t a career with a shrinking horizon. If you want to understand more about what the work actually involves, our page on what medical billing and coding is walks through the role in plain language.

Entry-Level Salary Expectations

If you’re starting out with a certificate or completing a training program, expect entry-level salaries in the $35,000–$42,000 range in most markets. Some regions and employer types pay more — a hospital system in a major metro area will typically offer more than a small rural physician’s office.

Entry-level doesn’t mean stuck, though. Medical billing and coding is a field where your salary increases meaningfully within the first two to three years as you gain experience and demonstrate competence. Many employers also offer raises tied to earning or maintaining professional certifications.

The key variable at the entry level is whether you hold a certification. Candidates with a CPC (Certified Professional Coder) or similar credential consistently command higher starting salaries than those without one. According to AAPC’s 2024 Medical Coding and Billing Salary Report, certified professionals earn an average of $62,689 annually — that’s 16.6% more than their non-certified peers, who average $53,749.

Foundation BMC’s Medical Terminology Course is designed specifically for students entering the field with no prior experience, giving you the anatomical and terminology foundation that every coder needs from day one.

How Certification Affects Your Salary

Certification is the single most controllable factor in your earning potential. The data is clear: certified coders earn more than uncertified ones at every experience level.

The CPC (Certified Professional Coder) from AAPC is the most widely recognized credential, and it’s the one most frequently listed as a requirement or preference in job postings. AAPC’s salary data shows that the gap between certified and non-certified professionals has remained consistent year over year:

Beyond the CPC, additional specialty certifications can push your earnings further. Certifications in areas like risk adjustment coding (CRC), surgical coding, or specific medical specialties signal advanced expertise and qualify you for higher-paying positions. AAPC’s 2025 salary report confirmed that Certified Professional Coders saw an unemployment rate of just 2.5% in 2024 — well below the national unemployment rate — further evidence that certified coders are in demand.

The return on investment is substantial. Foundation BMC’s full program — from the Medical Terminology Course through the Medical Billing and Coding Course and the Certified Professional Coder Course — totals $4,900. If CPC certification adds $7,000 or more to your annual salary (and the data says it adds substantially more than that), you’ve recouped your training investment in well under a year — and the salary difference compounds over the length of your career.

Salary by Experience Level

Experience plays a major role in salary progression. According to salary data compiled from AAPC surveys and PayScale, here’s what the trajectory typically looks like:

0–1 years of experience: $35,000–$42,000. You’re learning the practical application of what you studied, building speed with code books and software, and establishing your accuracy rate. The AAPC reports that a CPC holder just starting out can expect around $44,969 per year.

1–3 years of experience: $42,000–$52,000. You’re faster, more accurate, and handling more complex cases. Many coders pick up additional responsibilities or begin specializing at this stage. AAPC data shows salaries increase by roughly 43% from entry-level to late career.

3–5 years of experience: $52,000–$60,000. At this level, you may be handling complex surgical coding, specializing in a high-demand area, or taking on team lead responsibilities.

5+ years of experience: $60,000–$80,000+. Senior coders, coding managers, coding auditors, and compliance specialists at this level are in high demand and have significant leverage in salary negotiations. AAPC data shows a CPC holder with 31+ years of experience can earn up to $78,746 per year (AAPC 2024 Salary Report, via SMC Academy analysis).

The important thing to note here is the trajectory. You don’t stay at your entry-level salary for long, especially if you’re strategic about certification and specialization. Foundation BMC’s CPC Course includes AAPC student membership, two exam attempts, and all required textbooks — everything you need to start climbing that salary curve.

Salary by State

Geography matters. Cost of living, demand for healthcare workers, and the concentration of healthcare facilities all influence what employers pay.

According to BLS data and analysis from Nurse.org and NursingProcess.org, here’s how salaries break down regionally:

Highest-paying states tend to be those with high costs of living and large healthcare systems. The District of Columbia, Maryland, Washington, California, and Connecticut consistently report the highest average salaries for medical records specialists, according to USCI analysis of BLS data. Massachusetts tops the list with an average of around $67,260 annually.

Mid-range states — including Texas, Florida, Pennsylvania, Illinois, Ohio, Colorado, and Georgia — typically report medians in the $48,000–$56,000 range. These states often offer a favorable ratio of salary to cost of living, meaning your dollar goes further. Colorado, where Foundation BMC is based, is among the states where medical billing and coding jobs are projected to grow the fastest in coming years, according to NursingProcess.org.

Lower-cost states in the South and parts of the Midwest may show median salaries in the $40,000–$48,000 range, but the lower cost of living often offsets the difference in nominal pay. States like Mississippi, Arkansas, West Virginia, and Alabama tend to fall in this range.

One important note: remote work is changing the geography equation. If you live in a lower-cost area but work remotely for an employer based in a higher-paying market, you can potentially earn above your local average. AAPC’s 2024 survey found that 63.7% of respondents work remotely — up from 55% the year before (AAPC 2024 Salary Report). Some estimates put the figure even higher, with over 65% of coders now working remotely as of 2025 (MedicalBillingAndCodingPrograms.org). This is an increasingly common arrangement in the medical coding field, and it’s one of the reasons Foundation BMC’s online, self-paced format works well — you’re already learning in the same environment where many of these jobs are performed.

Salary by Employer Type

Where you work affects your paycheck as much as where you live. Different employer types have different compensation structures.

According to BLS industry wage data and Nurse.org salary analysis:

Hospitals and health systems generally offer the highest salaries for billers and coders, along with benefits packages that include health insurance, retirement plans, and paid time off. BLS data shows hospitals employ about 28% of medical records specialists and tend to pay above the national median. Large health systems may pay approximately 14% more than solo physician practices, according to AAPC survey data analyzed by SMC Academy.

Insurance companies and payers employ coders for claims review and auditing roles, which often pay above average. BLS data reports that insurance carriers are among the top-paying industries for medical records specialists.

Large physician groups and specialty practices pay competitively, particularly for coders with specialty-specific knowledge. Foundation BMC’s program teaches physician coding using ICD-10-CM and CPT® — the code sets used in these settings — preparing you for the employer types where demand is strongest. Learn more about the specifics in our Medical Billing and Coding Course.

Government agencies (Medicare, Medicaid, VA hospitals) offer stable employment with strong benefits, though base salaries may be slightly lower than the private sector.

Third-party billing companies and revenue cycle management firms offer varied compensation — some pay well, others are more entry-level focused.

Consulting and freelance coding is a growing segment. Experienced coders who work independently can set their own rates, with many charging $25–$50+ per hour depending on their specialty and the complexity of the work.

High-Demand Specialties That Pay More

Not all coding work pays the same. Certain specialties command premium compensation due to their complexity and the shortage of qualified professionals.

Risk adjustment coding has become one of the highest-demand specialty areas. Organizations participating in Medicare Advantage and value-based care models need coders who understand HCC (Hierarchical Condition Category) coding. The CRC (Certified Risk Adjustment Coder) credential qualifies you for these roles, which often pay $55,000–$70,000+.

Surgical coding, particularly for orthopedic, cardiovascular, and neurosurgery specialties, consistently pays above average. The complexity of surgical code selection and the financial stakes involved mean employers pay a premium for accuracy.

Coding auditing and compliance roles appeal to experienced coders who want to move into oversight and quality assurance. AAPC’s salary data shows auditors earned an average of $74,002 in 2023 — a 4.3% year-over-year increase (AAPC 2024 Salary Report).

AAPC Approved Instructors — like Foundation BMC’s Tammy Sue Keyes — reported earning an average of $97,070 in 2024, reflecting the premium placed on teaching expertise in this field (AAPC 2025 Salary Report). This shows that the career path in medical billing and coding extends well beyond the coding desk.

The Remote Work Advantage

Remote work deserves its own section because it has fundamentally changed how medical billing and coding careers function. Medical coding is now one of the most remote-friendly occupations in all of healthcare.

According to AAPC’s surveys, remote work among medical records specialists has grown steadily — from 55% in 2022 to 63.7% in 2023 (AAPC 2024 Report), with some industry analyses suggesting figures above 65% in 2025. In Minnesota, the figure reaches as high as 89% of billers and coders working from home (NursingProcess.org).

This matters for salary because remote work lets you decouple your income from your local job market. A coder living in a lower-cost state can work for a hospital system or insurance company headquartered in a higher-paying metro — and earn closer to that employer’s pay scale.

It’s worth noting that while remote work is common for experienced coders, most employers want to get to know you and your work ethic before extending remote privileges. This typically takes one to two years of in-office or hybrid work. Foundation BMC is transparent about this reality in our FAQ section — we believe in setting honest expectations from the start.

Maximizing Your Earning Potential

If you’re entering this field with an eye on long-term earning potential, a few strategic decisions will pay off:

Get certified early. The CPC should be your first milestone. Foundation BMC’s program is specifically designed to prepare you for the CPC exam through AAPC, and our Certified Professional Coder Course includes two exam attempts so you have every opportunity to pass.

Build experience for two to three years in a generalist role, then consider specializing in a high-demand area like risk adjustment, surgical coding, or compliance.

Pursue additional certifications that align with your specialty. Each additional AAPC credential correlates with a meaningful salary increase — the jump from one to two credentials alone is roughly $8,400 per year in additional earnings (AAPC 2024 Salary Report).

Stay current with coding updates, guideline changes, and industry trends. The medical billing and coding field evolves annually with code set updates, and professionals who keep pace are the ones who advance.

Consider remote positions that let you access higher-paying markets regardless of where you live.

The career path from entry-level coder to senior specialist or coding manager is well-established, and the salary progression is real. A career changer who earns their CPC, works diligently for five years, and adds a specialty certification can realistically be earning $60,000–$80,000 — a meaningful income that started with a training investment of under $5,000.

Job Satisfaction: It’s Not Just About the Money

Salary matters, but it’s not the only factor in career satisfaction. AAPC’s 2024 survey found that 69.4% of medical coding and billing professionals reported being satisfied or happy with their jobs and compensation — a 6.8% increase from the previous year (AAPC 2024 Salary Report, via SMC Academy). The combination of stable employment, remote work flexibility, clear advancement paths, and the knowledge that your work directly supports patient care creates a career that people stick with and build upon.

Starting Your Path

Foundation BMC’s program prepares students for the medical billing and coding field and the CPC certification exam for a total cost of $4,900 — a fraction of what university-based programs charge. The self-paced online format works for people who are balancing training with work and family, and every student gets direct access to instructor Tammy Sue Keyes — including her personal cell phone number for questions on evenings and weekends. That level of one-on-one support is rare in education programs at any price point.

Here’s how the program breaks down:

  • Medical Terminology Course — $700: 16 classes covering anatomy and medical terminology. The foundation everything else builds on. Four months to complete.
  • Medical Billing and Coding Course — $1,600: 21 chapters covering ICD-10-CM, CPT®, HCPCS, insurance billing, HIPAA compliance, and professional ethics. Six months to complete.
  • Certified Professional Coder Course — $2,600: 20 chapters of intensive CPC exam preparation. Includes AAPC student membership, CPC workbook and textbook, two exam attempts, and all required code books. Nine months to complete.

If you’re exploring this career because the salary data looks promising, the next step is getting the details. Contact Foundation BMC to learn more about the program, or visit our course pages to explore the curriculum at your own pace.

Sources

  1. U.S. Bureau of Labor Statistics. “Medical Records Specialists.” Occupational Outlook Handbook. May 2024 data. https://www.bls.gov/ooh/healthcare/medical-records-and-health-information-technicians.htm
  2. AAPC. “Medical Records Specialists Reach Higher Ground in Healthcare.” 2024 Medical Coding and Billing Salary Report. Published February 2024. https://www.aapc.com/blog/89864-medical-records-specialists-reach-higher-ground-in-healthcare/
  3. AAPC. “Survey Says: AAPC Credentials Insulate Members From Inflation.” 2025 Medical Coding and Billing Salary Report. Published February 2025. https://www.aapc.com/blog/92000-survey-says-aapc-credentials-insulate-members-from-inflation/
  4. Nurse.org. “Medical Billing and Coding Salary by State.” 2026 edition, based on BLS May 2024 data and AAPC survey data. https://nurse.org/healthcare/medical-billing-coding-salary/
  5. NursingProcess.org. “Medical Billing and Coding Salary by State – 2025.” https://www.nursingprocess.org/medical-billing-and-coding-salary-by-state.html
  6. U.S. Career Institute (USCI). “Earning Potential for Medical Coding and Billing Professionals.” https://www.uscareerinstitute.edu/blog/earning-potential-for-medical-coding-and-billing
  7. PayScale. “AAPC Certified Professional Coder (CPC) Salary.” Based on 613 survey responses. https://www.payscale.com/research/US/Certification=AAPC_Certified_Professional_Coder_(CPC)/Salary
  8. SMC Academy. “Why Medical Coding.” Analysis of AAPC 2023 and 2024 Salary Reports. https://smcacademyllc.com/why-medical-coding/
  9. MedicalBillingAndCodingPrograms.org. “Medical Billing & Coding Salary Guide 2025-2026.” https://medicalbillingandcodingprograms.org/resources/medical-billing-coding-salary-guide/

Written by

Tammy Sue Keyes

Published on

March 4, 2026