Healthcare coding is the process of translating important medical information into simple codes to document medical records and accuracy in medical billing.

There are two types of medical codes

• ICD – International classification of diseases.
• CPT – Current procedural terminology.

The purpose of codes is for uniform documentation between medical facilities and ease of understanding by insurance providers. After service is provided by the healthcare providers, insurance companies have to understand the nature of the service correctly to process the bill. Just explanations may not give a correct idea of the service provided to the insurance companies, therefore a set of specific codes has been established as a method of explaining the service. It is the work of medical coders to do so which will give an accurate understanding of the service provided. This method is useful and efficient for insurance providers to start their processes.