Medical codes are used to generate bills for healthcare services provided to patients. These codes determine the amount payable by insurance companies or patients themselves. Accurate coding ensures that healthcare providers receive appropriate reimbursement for their services.

Insurance companies require medical codes to process claims submitted by healthcare providers. These codes provide a standardized language that allows insurers to understand the nature of the services rendered and determine coverage eligibility.

Governments and healthcare organizations rely on coded data to plan public health initiatives, allocate resources efficiently, and monitor population health trends. Medical coding enables policymakers to identify areas where specific interventions are needed and measure the impact of healthcare programs.