Who is responsible for disabled elderly people? How can the burden of care on families be eased? “Long-Term Care Insurance” is one of the solutions. In April, 2000, after six years of deliberation, consultation and drafting, Japan implemented a Long- Term Care Insurance for the e1der1yon a social insurance mode1. However, that bil1 raises many complicated questions about the detai1s of who benefits and who carries the burden. Specifically, how will the costs and burdens to be borne be divided between medical and social welfare bodies, the central and local governments, and the elderly, their families and others? The opinions of officials, scholars and the public are quite divergent on these questions. This paper critically analyses the history and background of Japan’s Long-Term Care Insurance and presents it as a living example that Taiwan can consider as a model for a scheme to provide long-term care for our own elderly.