THE CONTROVERSY over CareFirst BlueCross BlueShield's planned sale to WellPoint Health Networks and conversion from nonprofit status has obscured a pivotal long-term issue: If the company's proposal is rejected by the state insurance commissioner, what next?

The issue recently was highlighted by a consultant's conclusion that multimillion-dollar bonuses and severance payments for CareFirst executives are illegal.

We have a historic opportunity to re-invent CareFirst along the lines originally intended when the 1937 General Assembly issued a charter to CareFirst's predecessor company, Blue Cross of Maryland.

The legislature should see that the insurer returns to its roots as a not-for-profit charity charged with limited objectives: offering affordable health insurance to the widest possible number of Maryland subscribers.

Stripping the profit motive from CareFirst ought to be the main goal. CareFirst should not become just another profit-driven health insurer. That would serve no purpose beyond feeding the egos and bank accounts of CareFirst executives and board members.

Instead of focusing almost exclusively on growing profits each and every year, the company, as a state-chartered nonprofit, ought to be required to:

Find effective ways to tap into the uninsured and difficult-to-insure markets, where the need is great.

Commit itself to providing affordable health insurance coverage to the greatest number of Marylanders.

Become a positive force in supporting this state's innovative health care policies: the all-payer system, health insurance products for small businesses and the prescription drug program.

Re-enter the Medicaid managed-care market that it abandoned.

Turn excess profits over to the Maryland Health Care Foundation so this money can be used to lower the number of people who lack health insurance.

Report annually on its community-benefit contributions.

Rename the company Maryland BlueCross-BlueShield to underline this "Back to the Future" approach.

To accomplish these objectives, the General Assembly should restructure the current CareFirst board to add more community and consumer representatives. No compensation should be paid to board members, beyond travel expenses and a very modest per diem. (Board members have averaged $37,600 a year). Executive compensation should parallel comparable nonprofits, not Fortune 500 companies, as is now the case.

As for CareFirst's financial viability as a nonprofit insurer, this can be ensured in a number of ways, including giving CareFirst access to the same state-backed capital financing now available to hospitals and colleges and creating tax incentives to help the company bolster reserves.

The new Maryland BlueCross-BlueShield would play a far different role than the profit-oriented CareFirst. It would act as a true nonprofit health insurer, offering reasonably priced coverage to a broad array of Marylanders.

Over the years, CareFirst has lost its way. Legislators and Gov.-elect Robert L. Ehrlich Jr. now have a chance to set the company on the right path as a partner in meeting this state's unique health care needs.

Robert R. Neall is a Democratic state senator from Anne Arundel County, a member of the Senate Budget and Taxation Committee and the director of finance for the Johns Hopkins Health System.