Final answer:
Eligibility verification is the process of checking health insurance coverage, determining contract conditions, and confirming total charges; it mitigates issues such as adverse selection in insurance markets.
Step-by-step explanation:
The process of checking health insurance coverage, determining contract conditions, and acquiring the total charges is known as Eligibility verification (D). Eligibility verification ensures that the patient's insurance coverage is active and covers the proposed medical services. This process is crucial within both fee-for-service health financing systems and health maintenance organizations (HMOs). It directly affects the reimbursement process, as it identifies the patient's benefits and the amount the insurance is expected to pay, thereby preventing issues like adverse selection, which can complicate insurance markets when there is an informational imbalance between insurance buyers and the insurance company.