True or False: Protected Health Information (PHI) can identify an individual and is transmitted by a "covered entity."

The statement is true because Protected Health Information (PHI) is defined as any information that can be used to identify an individual and relates to their health status, healthcare provision, or healthcare payment. PHI is specifically linked to individuals and can include a wide range of identifiers such as names, addresses, birth dates, Social Security numbers, and medical records.

Additionally, a "covered entity" refers to healthcare providers, health plans, and healthcare clearinghouses that are subject to regulations under the Health Insurance Portability and Accountability Act (HIPAA). These entities are responsible for protecting the privacy and security of PHI and are required to safeguard this information when it is transmitted or stored. Since the definition of PHI includes any identifiable health information transmitted by these entities, the choice affirming the statement as true is indeed correct.

This understanding is fundamental in the context of healthcare, where privacy and the protection of patient information are critically important.