Written by MedixCode Team
If you are thinking about outsourcing your practice’s billing, the first question is usually simple: what will it cost? The honest answer depends on your specialty, claim volume, payer mix and what the company actually does for its fee. Two quotes with the same percentage can lead to very different bills once you add setup fees, minimums and services charged separately.
This guide explains how billing companies price their services, what typical rates look like, the hidden costs to ask about, how to compare outsourcing with an in-house biller, and exactly what MedixCode charges.
What Does Outsourced Medical Billing Typically Cost?
Most medical billing companies charge a percentage of the money they collect for you. Tebra’s guide to medical billing pricing notes that many companies quote a typical range of 4–10% of collections, and that in Tebra’s survey, 24.5% of billing companies using this model charged 6–7% in 2022.
Where your practice falls in that range depends on the factors below. Treat any published range as a starting point and compare full quotes, not headline percentages.
The Three Common Pricing Models
Percentage of collections
The company keeps a share of what it collects each month. This is the most common model because the company only earns when you get paid. Ask whether the percentage applies to net collections (money actually received) or to something broader, and whether there is a monthly minimum.
Per-claim pricing
You pay a flat fee for each claim submitted. It can look cheap for low-volume practices, but check whether resubmissions, denials and appeals are billed as extra claims.
Flat monthly fee
You pay a fixed amount each month regardless of collections. It is predictable, but make sure the scope covers denial work and follow-up on unpaid insurance claims, and ask what happens when your volume changes.
What Drives Your Rate
- Specialty complexity: Specialties with heavy prior authorization, modifiers or frequent payer edits take more work per claim.
- Claim volume and practice size: Higher volume usually means a lower percentage.
- Payer mix: Practices with many commercial plans, Medicaid managed care or out-of-network claims need more follow-up.
- Scope of services: Coding, eligibility checks, prior authorization, credentialing and patient statements may be included or billed separately.
- Existing unpaid claims: A large backlog of old or denied claims may be priced as a separate cleanup project.
Hidden Costs to Ask About
The percentage is only part of the price. Before you sign, ask in writing about:
- Setup or onboarding fees
- Monthly minimums
- Long-term contracts and early termination penalties
- Software or clearinghouse fees
- Extra charges for coding, patient statements or reports
- Credentialing and payer enrollment fees
- Fees on old unpaid claims the company did not originally bill
- Whether the rate applies to net collections or to a broader base
In-House vs. Outsourced Billing: Comparing the Real Cost
An in-house biller’s salary is only the starting point. According to the U.S. Bureau of Labor Statistics, the median annual wage for medical records specialists was $51,140 in May 2025, and $47,120 in physician offices. Add benefits, payroll taxes, billing software, clearinghouse fees, training, coding updates and coverage when someone is out or leaves.
A simple way to compare:
- Add up your full yearly cost of billing in-house, including people, software and time your providers and managers spend on billing issues.
- Divide by your annual net collections to get your in-house billing cost as a percentage.
- Then put that number next to outsourced quotes that cover the same work.
As an illustration only, a practice that collects $40,000 in a month would pay $1,520 that month at a 3.8% rate. Your actual numbers depend on your collections.
MedixCode Pricing
We publish our pricing so you can compare us easily. Full details are on our medical billing pricing page.
| Plan | Rate | What’s included |
|---|---|---|
| Solo & small practices | From 3.8% of net collections | Billing and certified coding; Monthly performance report |
| Group practices | From 2.8% of net collections | Billing and certified coding; Weekly performance report: collections, denials, and unpaid claims; Monthly review call |
| Enterprise | Custom, volume-based pricing | Billing and certified coding, scoped to your volume; Reporting built around your organization |
Every plan comes with the same terms:
- No monthly minimum
- No setup fee
- No long-term contract. Cancel with 30 days’ notice.
- Billing and certified coding included in all plans
- We work inside your existing EHR/PM system. No new software for your staff.
Your final rate depends on your specialty, payer mix and volume. Want to know your rate? Book a Free Consultation.
What’s Usually Included in Full-Service Billing
A full-service medical billing service typically covers:
- Eligibility and benefits checks
- Medical coding by AAPC/CPC Certified Coders and Billers
- Charge entry and claim submission
- Payment posting
- Denial management and appeals
- Unpaid claims and insurance follow-up
- Regular reporting
Larger organizations may need full revenue cycle management scoped to multiple locations, providers and payers.
Questions to Ask Before You Sign
- What exactly is included in the percentage, and what costs extra?
- Is the rate based on net collections?
- Is there a setup fee, monthly minimum or long-term contract?
- How much notice do I need to give to cancel?
- Are your coders certified, and do you know my specialty?
- What reports will I receive, and how often?
- Do you work inside my current EHR/PM system?
- How do you protect patient data?
Is Outsourced Medical Billing Worth the Cost?
It depends on what you pay now and what you get back. Look at your denial rate, days in accounts receivable, how much is aging past 90 days and how much staff time goes to billing. If those numbers are slipping, or one person leaving would put your cash flow at risk, outsourcing deserves a close look. If your in-house team is stable and your numbers are strong, the math may favor keeping billing in-house.
FAQs
How much does outsourced medical billing cost?
Most companies charge a percentage of collections. Industry sources such as Tebra cite a typical range of 4–10%. Your rate depends on specialty, volume, payer mix and the services included.
What does MedixCode charge?
MedixCode pricing starts from 3.8% of net collections for solo and small practices and from 2.8% for group practices. Enterprise organizations receive custom, volume-based pricing.
Does MedixCode charge a setup fee or monthly minimum?
No. There is no setup fee and no monthly minimum on any plan, and there is no long-term contract. You can cancel with 30 days’ notice.
What is included in MedixCode’s plans?
All plans include billing and certified coding. Solo and small practice plans include a monthly performance report. The group practice plan includes a weekly performance report: collections, denials, and unpaid claims, plus a monthly review call. Enterprise plans include reporting built around your organization.
What does “net collections” mean?
Net collections are the payments actually received from insurers and patients. Ask every billing company to define the base its percentage applies to before you compare quotes.
Is outsourcing cheaper than billing in-house?
Often, but not always. Compare your full in-house cost, including salaries, benefits, software and turnover, with outsourced quotes for the same scope of work.
Final Thoughts
The right billing partner is the one whose full cost you understand and whose work shows up in your collections. Compare the percentage, the base it applies to, the terms and what is included.
To get your own rate in writing, book a free consultation.