One of the current challenges in healthcare services is elder care, as China has been an aging society since 2000. Should the government implement policies to promote home-care services when many Chinese are unable to afford long-term institutional care, even if such institutional care is available? This essay conducts a survey of the situation in Beijing and examines the local government’s elderly service policies. The paper also offers a Confucian ethical approach to the issue and makes policy recommendations for home-care services. The author contends that although modern families tend to be smaller and urban lifestyles are different from those of the past, we still need Confucian ethics, which place great emphasis on the virtue of filial piety (xiao) for children, who are expected to respect and take care of their elders. According to the Confucian tradition, it is better for elderly people to live at home with assistance from their adult children, and to lead their elderly lives among their children and grandchildren. Therefore, an institution of elderly people is not considered a normal—much less an ideal—living environment. The essay’s author acknowledges the changes in modern society and family lifestyle in contemporary China, but recommends that policymakers consider Confucian ethics in their formulation of government policies concerning long-term elder care in a big city like Beijing. The essay shows that current government policy is heading in the right direction but needs to be improved.