medical billing scams

Medical Transcription/Billing/Coding Scams

There are three kinds of scams when it comes to medical transcription medical billing and medical coding.

The first come from schools that offer to teach you the skills you need to get started in this field. They promote salary levels that, yes, a few people do make, but most do not.

The second standard scam is to sell you a “pre-packaged business” in medical billing. They’ll tell you there’s a huge demand for medical billing, that many offices outsource it. However, they are more likely to outsource to large firms than to you, the individual trying to establish a brand new business.

The scammer may send you a package, including a brochure detailing the opportunity, application, samples on disc, contract, disclosure agreement and references. They’ll tell you that for a few thousand dollars they will train you and provide the software and technical support you’ll need to get started.

The final scam comes from so-called employers who offer on the job training. There’s one company that regularly changes names that does this. They tell you that you just need to pay a few hundred dollars for their software, then they will train you. Generally the problems fall in to one of two categories:

However, it must be noted that there are legitimate work at home opportunities in these fields, and in any of them it is possible to find your own clients and start your own business. But you’ll have to sell. The other option is to work for one of the big companies. I did medical transcription for Medquist for three years, so I know the jobs are out there.

There are real schools out there. In medical transcription, the Andrews School and CareerStep are considered quite reputable, and many employers hire from them. Their students work for services or start their own businesses. Of those who start businesses, some succeed and some fail, just as with any other business.

If you’re considering getting an education to work in medical transcription, billing or coding, do yourself a favor. Ask around before choosing a school. Don’t just rely on their references, especially if only a few are given; they could be shills. Contact potential employers even if you plan on starting your own business. Many recruiters have no problem telling people which schools they are willing to hire from and which they consider to be a waste of time and money.

The FTC has charged various medical billing opportunity companies for misrepresenting income potential and not providing appropriate investment information before making the sale. Do your research so you don’t get scammed.

If you are interested in medical transcription, take a look at my medical transcription section here on this site. I give free advice. I worked in the industry for three years from home.

If You Get Scammed

First try to clear it up with the company. If they are uncooperative, let them know that you will be contacting officials about the matter. Then do it.


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Copyright © 2003-2019 Stephanie Foster unless otherwise indicated


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