As Canada enters the twenty-first century, its highly prized program, medicare, is undergoing radical transformation. With technological change and the restructuring of health systems, the locus of care is shifting from institutions to the home. As a result, care that was formerly publicly financed under the Canada Health Act is technically becoming de-insured. This paper analyses the reform of community-based long-term care services in Ontario from 1985 to the present. During this period, three different parties, the Liberals, the NDP and the Progressive Conservatives, in turn, formed the government. Four different models were put forward before the current model was adopted by the current pc government. Each of these models is analysed with respect to design decisions that must be made in the policy dimensions of financing, delivery and allocation and evaluated in terms of equity, liberty, security and efficiency. Underlying the debate in Ontario was a fundamental disagreement about the role of government, reflected in views about the responsibilities of individuals and their families, and the appropriate place of for-profit organizations within a publicly funded system. The reform of this sector has significance that goes beyond its boundaries, with wider implications and warnings for health care in general.