Senator John McCain deals hammer blow to Donald Trump's bid to dismantle Obamacare

US Republicans failed spectacularly on Friday in their latest effort to dismantle Obamacare, leaving the party in stunned disarray and President Donald Trump's dreams of repealing his predecessor's health reforms on ice.

After a night of high suspense in the US Capitol, the extraordinarily tense vote came down to the wire, with Republican Senator John McCain, only recently diagnosed with brain cancer, casting the deciding vote against the legislation.

Senator John McCain cast the deciding vote - Credit: AP
Senator John McCain cast the deciding vote Credit: AP

Mr Trump wasted no time getting on Twitter to decry the outcome.

"3 Republicans and 48 Democrats let the American people down. As I said from the beginning, let ObamaCare implode, then deal. Watch!" he tweeted.

"This was a disappointment, a disappointment indeed," Senate Majority Leader Mitch McConnell told colleagues after the vote.

Senate Majority Leader Mitch McConnell walks to his office prior to an all night round of health care votes on Capitol Hill - Credit: Reuters
Senate Majority Leader Mitch McConnell walks to his office prior to an all night round of health care votes on Capitol Hill Credit: Reuters

Mr McConnell called his bill the Health Care Freedom Act, but among his colleagues it was known as "skinny repeal." It's not intended to become law, but to open a path for a House-Senate conference committee to try to work out comprehensive legislation Congress can pass and send to Mr Trump.

The amendment was a last resort for Senate Republicans to pass something - anything - to trigger negotiations with the House.

In addition to Mr McCain, Lisa Murkowski of Alaska and Susan Collins of Maine voted with all Democrats to defeat the measure.

"We are not celebrating; we are relieved--for the Americans who can now keep their #healthcare. We must work together to improve the law," US Senate Democratic leader Chuck Schumer tweeted following the vote.

The measure would have repealed the unpopular Affordable Care Act requiring most people to have health insurance or risk a fine from the IRS. A similar requirement on larger employers would be suspended for eight years.

Additionally it would have denied funding to Planned Parenthood for a year, and suspended for three years a tax on medical device manufacturers. 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.