Which of the following statements about medical coding is true?

• A. Recording patient demographics
• B. Classifying diseases and procedures using standardized codes
• C. Systematic coding for healthcare billing
• D. Encoding diagnoses and procedures for billing

Answer: (C)

Medical coding is the systematic process of applying standardized codes to diagnoses and procedures to support billing and administrative needs. This is best captured by describing it as systematic coding for healthcare billing, because the codes must be applied consistently across encounters using established code sets like ICD-10-CM/PCS and CPT/HCPCS to enable accurate reimbursement and data reporting. Recording patient demographics is data collection rather than coding. Describing the activity as classifying diseases and procedures with standardized codes is true, but it lacks the explicit emphasis on the systematic, billing-oriented process that defines medical coding in practice. Encoding diagnoses and procedures for billing is very close, but the phrase “systematic coding” highlights the uniform, standardized method used across the health system.