Medical coding is the process of reading medical documentation written by a healthcare provider and converting it to numbers and alphanumeric codes. These codes are then submitted to 3rd party payers on a claim. The third party reviews the claim and determines if the services and procedures should be paid based on medical necessity. Medical necessity is proven by making sure the diagnosis code explains why the procedure code or service was done. Based on that information, the 3rd party will determine if the claim should be paid. That’s the way a medical facility communicates with a patient’s insurance and it’s critical that the communication between both of these entities is accurate and this is why the medical coder job is so important.