Medical Billing vs Medical Coding: What's the Difference?

Medical billing and medical coding are often talked about together, and for good reason: They're two closely connected functions that frequently live under one shared credential. According to the American Academy of Professional Coders^® (AAPC^®), medical coding and billing are distinct but related processes, both involved in reporting diagnoses, procedures, and services to insurance payers.¹ In higher education, for example, both roles can be separate career paths within the same academic program.²

In this article, we'll look at what each function actually involves, how they differ, where they overlap, and how a certificate program may cover both.

What Is Medical Coding?

Medical coding means translating a patient's diagnosis, treatment, and services into standardized codes used across the healthcare system. The U.S. Bureau of Labor Statistics tracks this work as part of the broader Medical Records Specialists occupation.

According to the BLS, medical coders assign diagnosis and procedure codes for patient care, population health statistics, and billing purposes, reviewing details such as a patient's preexisting conditions.

Coders also act as a liaison between healthcare providers and billing offices, since the codes they assign become the foundation for what eventually gets billed.³

What Is Medical Billing?

Medical billing, by contrast, means turning coded medical information into an actual claim and following that claim through the reimbursement process. According to AAPC, medical billing is the process of generating healthcare claims to submit to insurance companies to obtain payment for services rendered by providers. After translating a coded service into a claim, a medical biller tracks that claim to help ensure the provider is reimbursed for the work performed.¹

Medical Billing vs. Medical Coding: Key Differences

The differences come down to what each role is responsible for:

• Focus: Medical coding centers on assigning accurate diagnosis and procedure codes to a patient's record.³ Medical billing centers on turning those codes into a claim and pursuing payment on it.¹
• Where the work falls in the process: Billing actually wraps around coding rather than simply following it. According to AAPC, front-end billing tasks, such as registering a patient and verifying insurance coverage, happen before a visit, while coding happens once the patient has been seen; billing then resumes on the back end, using the codes a coder assigned to generate a claim and follow it through to reimbursement.¹
• Entry requirements: Rasmussen University part of American Public University System (“Rasmussen University”) notes that most coding positions are not considered entry level and that a combination of education and work experience is typically required to attain a coding position.²
• Training and focus: According to AAPC, medical coders complete training that leads toward certification exams testing their coding proficiency, while medical billers train with more of a focus on understanding insurance requirements and the billing process itself.⁵

How Medical Billing and Medical Coding Overlap

For all their differences, the two functions share real common ground. According to AAPC, medical coders and billers both work with clinical staff and need to understand medical terminology, anatomy, and pathophysiology well enough to interpret physician notes and operative reports. Coders sometimes take part in the billing process directly, and in small physician practices, it's not unusual for the same person to handle both roles.¹ The two also collaborate when something goes wrong: when a claim is denied, billers often team up with coders to figure out the cause and prepare an appeal.¹

Skills a Medical Coder Needs

According to the Bureau of Labor Statistics, several qualities matter for this kind of coding-focused work:⁴

• Analytical skills, for interpreting medical documentation and translating a diagnosis into the correct code
• Attention to detail, since verifying and coding patient information accurately is central to the role
• Integrity, given the ethical and legal responsibility to protect patient confidentiality while handling sensitive data
• Interpersonal skills, for discussing patient information, discrepancies, and data requirements with physicians, billing staff, and others involved in the process

How To Choose Between Medical Billing and Medical Coding

Because the two are so closely connected, and often taught together in the same program, the choice may come down to which side of the process interests you more. Someone interested in reviewing clinical documentation and assigning codes may want to explore medical coding, while someone interested in claims and reimbursement processes may want to explore medical billing.

Exploring a Medical Billing and Coding Certificate at Rasmussen University

If either path interests you, the online Medical Billing and Coding Certificate at Rasmussen University covers both functions in a single program. It's designed to help build skills in coding and billing technology, information security, and general healthcare knowledge, and may also help prepare students to pursue the American Health Information Management Association^® (AHIMA^®)'s Certified Coding Associate (CCA) credential or, with industry experience, the Certified Coding Specialist (CCS).²

Interested in building skills relevant to both functions? Explore the online Medical Billing and Coding Certificate at Rasmussen University.²

Earning a certificate or degree does not guarantee employment or specific job outcomes. Employment conditions in your area may vary.

American Academy of Professional Coders^® is a registered trademark of the American Academy Holdings, LLC, Suite F 2233 South Presidents Drive, Salt Lake City UTAH 84120.
AAPC^® is a registered trademark of the American Academy Holdings, LLC, Suite F 2233 South Presidents Drive, Salt Lake City UTAH 84120.
American Health Information Management Association^® is a registered trademark of the American Health Information Management Association, 201 West Lake Street #226, Chicago, Illinois 60606.
AHIMA^® is a registered trademark of the American Health Information Management Association, 201 West Lake Street #226, Chicago, Illinois 60606.

¹AAPC, What is Medical Billing?, at https://www.aapc.com/resources/what-is-medical-billing (accessed Sept. 18, 2026).
²Rasmussen University, Medical Billing and Coding Certificate, at https://www.rasmussen.edu/degrees/health-sciences/health-information-management/medical-billing-and-coding-certificate/ (accessed Sept. 18, 2026).
³Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Medical Records Specialists, at https://www.bls.gov/ooh/healthcare/medical-records-and-health-information-technicians.htm#tab-2 (accessed Sept. 18, 2026). Employment conditions in your area may vary.
⁴Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Medical Records Specialists, at https://www.bls.gov/ooh/healthcare/medical-records-and-health-information-technicians.htm#tab-4 (accessed Sept. 18, 2026). Employment conditions in your area may vary.
⁵AAPC, Understanding the Differences Between Medical Coding and Medical Billing, at https://www.aapc.com/resources/understanding-the-differences-between-medical-coding-and-medical-billing (accessed Sept. 18, 2026).