To:     Participants in the Consolidated Associations of Railroad Employees Health Care Plan

Date:  April 10, 2006

From: Shelly Hawk, Administrator

Re:     Notice of Privacy Practices

The Consolidated Associations of Railroad Employees (CARE) is committed to protecting your privacy. CARE receives and maintains certain health information about you (Protected Health Information or PHI). Your privacy rights as they pertain to your health coverage are outlined below. As required by the Federal Government, we are notifying you of the uses and disclosures that we may make with your PHI. Please review this notice carefully.

Collection of Information

CARE may use or disclose PHI to facilitate payment of your medical claims. In the normal course of business, it is necessary to collect, receive and make use of certain PHI. Without such data, we would be unable to properly process and pay medical claims on your behalf. In addition to our usage, we utilize other companies to assist us with the claims payment process. By them having access to your claim, they can view PHI. In these instances, CARE will maintain Business Agreements and/or Chain of Trust Agreements with other entities who may be directly or indirectly involved in your healthcare stating they will not use or release your PHI in any way other than is necessary to process your claim.

Allowable use of data

CARE will only share the minimum level of information on behalf of a member in order to determine eligibility and covered benefits, assist with precertification and/or preauthorization, utilization review, etc.

We will not release any of your PHI to the following without your prior written approval:

If you give us authority to release your information, this authority can be revoked by you as well as limited in scope to whatever you desire.  Any communication between yourself or your authorized representative and CARE will be considered confidential. In addition, you may ask us to restrict any PHI we have in your files. You have the right to inspect your records and make copies of it. If you find something that may be in error, you have the right to amend it. A court of law can order release of your PHI. If you believe your confidential PHI has been released without your authority, you may file a complaint. For further information, please contact:

Consolidated Associations of Railroad Employees

Shelly Hawk, Administrator

4912 Midway Drive

Temple, Texas 76502

(800) 334-1330

This policy is effective January 1, 2003. CARE reserves the right to change or modify this notice and terms therein.