Final answer:
A cost-based fee can indeed be charged for providing a copy of PHI according to HIPAA regulations, as long as it only covers copying, supplies, labor, and postage costs.
Step-by-step explanation:
True, a cost-based fee may be charged for making a copy of the Protected Health Information (PHI). Under the Health Insurance Portability and Accountability Act (HIPAA), a covered entity can charge individuals a reasonable, cost-based fee that includes only the cost of copying, including the cost of supplies for and labor of copying the PHI requested by the individual; and postage, if the individual has requested the copied PHI be mailed. Therefore, entities must ensure that the fee charged is not excessive and reflects only the permitted costs associated with the request.