The result is a bitter defeat for the Republican leadership, with Senate Majority Leader Mitch McConnell called it a "disappointing moment". "I regret that our efforts were not enough this time".

But it was voted down by 51 votes to 49 in the Republican-dominated Senate.

After suggesting that the Senate should nuke its rules in order to get an Obamacare repeal bill passed, President Donald Trump signaled that he isn't too anxious about the effort to dismantle his predecessor's signature legislative achievement.

Last night, in a thrilling drama that entertains the sort of people who stay up late chatting on Twitter about Senate votes, three Republicans voted against their party's third and final health care bill, and the measure is officially dead. Lisa Murkowski of Alaska, Susan Collins of ME and John McCain of Arizona - the bill went down in suspenseful defeat. Orrin Hatch and Mike Lee voted in favor of the so-called "skinny repeal" of Obamacare that failed in the U.S. Senate late Thursday. And Senate Minority Leader Chuck Schumer calling for Congress to come together to address Obamacare's existing issues. "For myself, I can say - and I think I'm pretty safe in saying for people on this side of the aisle - that bailing out insurance companies, bailing our insurance companies with no thought of any kind of reform is not something I want to be part of".

Hatch vowed to continue efforts to repeal the law.

The bill is referred to as a "skinny" repeal because it contains only narrow provisions that have broad support from the GOP conference, tabling more controversial items with the goal of getting the votes needed to pass.

Trump, who campaigned for the White House on promises to repeal Obamacare, has offered no legislation of his own and little guidance to the Senate, although he has berated them for their inaction. A similar requirement on larger employers would be suspended for eight years. States could seek waivers from consumer protections in the Obama-era law, and individuals could increase the amount they contribute to tax-sheltered health savings accounts for medical expenses.

A bill that would have partially done that, but mostly would have set up a conference with the House, failed in the wee hours of Friday morning when Arizona Sen.

The plans was to pass some kind of legislation to advance to the next stage in the legislative process, to reconcile it with a bill passed by House of Representatives in May, and come up with one combined version acceptable to both chambers.

But Mr McCain then approached a group of Democrats who appeared happy to see him.