Republicans made the decision after it was clear their latest plan would fail.

The Senate will not vote on Republicans' latest bill to repeal Obamacare this week, putting an end to their seven-year push for now.

The decision was reached at a party lunch Tuesday after it became clear the plan would fail, GOP senators said. Three Senate Republicans had already said they would vote against the measure, and the GOP could only afford two defections.

"Why have a vote if you know what the outcome is and it's not what you want. I don't know what you gain from that. But I do believe that the health care issue is not dead, and that's what counts," said GOP Sen. Richard Shelby of Alabama. "We've got some time this year to deal with it and I think we have to."

Vice President Mike Pence told Republicans they should keep working on health care and not give up just because a key procedural deadline to pass the bill with a simple majority expires after Sept. 30.

"He does" want us to keep working, said Sen. Jim Inhofe (R-Okla.). "He's conveyed it outside of that meeting [too]. The votes aren't there so let's keep massaging."

However, Republicans may not opt to pursue a health care overhaul and tax code rewrite simultaneously, as some GOP lawmakers desire. Sen. Pat Toomey (R-Pa.) said it's it's better to "focus on taxes right now."

It was unclear before the lunch whether Senate Majority Leader Mitch McConnell and his divided conference would hold the vote.

“It’s gonna be up to the leader,” Senate Finance Committee Chairman Orrin Hatch (R-Utah) said earlier Tuesday. “But I’d be happy to do it.”

Senate Republicans considered holding a vote they knew was doomed to fail to show the conservative grass roots and the broader party that they did all they could to dismantle the law. But there was also concern about the optics of going ahead with a failed vote.

Republicans are also privately worried that President Donald Trump could continue to attack them if they give up on the effort publicly.

The bill drafted by Sens. Lindsey Graham (R-S.C.) and Bill Cassidy (R-La.) gained surprising steam earlier this month, yet struggled to pick up the final handful of votes needed for Senate Republicans to pass Obamacare repeal with a simple majority. Republicans who oppose Graham-Cassidy include GOP Sens. Rand Paul of Kentucky, John McCain of Arizona and Susan Collins of Maine, who formally announced her position Monday evening.

The bill would transform Obamacare funding into block grants for the states, make deep cuts to Medicaid and allow states to roll back insurance regulations, drawing opposition from moderate Republicans like Collins. McCain bemoaned the rushed process for moving a partisan bill. The conservative Paul, meanwhile, said the plan maintained too much of Obamacare. A number of other wary Republicans had yet to endorse the bill, and a flurry of last-ditch changes did nothing to win over skeptics. Read more at Politico