Medical Billing: A Very Hot Home Business, But Be Careful

by Rick Carbone

If you have been looking for a legitimate field to start making money at home in your own business, consider the medical billing field. A recent American Hospital Association survey showed that about 18% of medical billing and coding positions remain unfilled due to a lack of qualified candidates, while the US Bureau of Labor Statistics predicts that medical coding and billing will remain among the top fastest growing occupations for many years to come. 

Medical billing is the act of billing insurance companies or the US Government for services provided by healthcare providers (Doctors).  Medical billers are important members of the medical office team; a well trained medical biller can increase the overall revenue of a healthcare practice.  

Medical billing does not always require the medical biller to actively work in an office and it has spawned a lucrative field for anyone that wants to train for it. 

A well trained medical biller can earn anywhere between $20,000 to $45,000 per year which makes it a perfect home based business.  However, The Federal Trade Commission (FTC) has brought charges against promoters of medical billing opportunities for misrepresenting the earnings potential of their businesses and for failing to provide key pre-investment information required by law.  So it pays to do your homework. 

Furthermore the FTC states: 

Ads for medical billing business opportunities appear on the Internet and in the classified sections of local newspapers and "giveaway" shopper's guides. In the "Help-Wanted" classified sections, the ads may appear next to legitimate ads for hospital medical claims processors, leading consumers who respond to think they're applying for a job, not buying a business opportunity. 

The ads lure consumers with promises of substantial income working from home full- or part-time - "no experience required." They direct consumers to call a toll-free number for more information. 

If you call, a sales representative will entice you to sign up by telling you that the processing of medical claims is a lucrative business, that doctors are eager for help with electronic claims processing, and that you - even without any experience - can do this work from the comfort of your home. 

Medical billing scammers charge a fee of hundreds, or even thousands, of dollars. In exchange, they claim to provide everything you supposedly need to launch your medical billing business: the software program to process the claims and a list of potential clients. 

But the reality is that few consumers who pay for medical billing opportunities find clients or make any money, let alone earn the promised substantial income. Competition in the medical billing market is fierce, especially for those who are new to it. Many doctors' offices process their own medical claims. Doctors who contract out their medical billing often use established firms, not individuals working from home. 

This is not to say that training, in a legitimate business, for a career in medical billing or coding is wrong, the contrary is that it’s a great field.  As a home based business, that remains to be seen.  So be careful.