Senate Majority Leader Mitch McConnell Addison (Mitch) Mitchell McConnellOcasio-Cortez to voters: Tell McConnell 'he is playing with fire' with Ginsburg's seat McConnell locks down key GOP votes in Supreme Court fight Video shows NYC subway station renamed after Ruth Bader Ginsburg MORE (R-Ky.) acknowledged Monday that Congress's next steps on healthcare are unclear after Republicans failed to repeal ObamaCare.

"Obviously we had a setback on the effort to make dramatic changes on ObamaCare. The way forward now is somewhat murky," the Senate GOP leader said at a Chamber of Commerce event in Kentucky with Treasury Secretary Steven Mnuchin Steven Terner MnuchinLawmakers fear voter backlash over failure to reach COVID-19 relief deal United Airlines, unions call for six-month extension of government aid House Democrats plan to unveil bill next week to avert shutdown MORE.

A GOP push to pass a "skinny repeal" of ObamaCare failed in a dramatic 49-51 vote before the August recess. A broader repeal proposal and a measure to repeal and replace the Affordable Care Act simultaneously also failed to get enough votes to pass in the Senate.

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McConnell added that lawmakers were "going to see" what negotiations between Sens. Lamar Alexander Andrew (Lamar) Lamar AlexanderMcConnell locks down key GOP votes in Supreme Court fight Alexander backs vote on Trump Supreme Court nominee: What Democrats 'would do if the shoe were on the other foot' Toobin: McConnell engaging in 'greatest act of hypocrisy in American political history' with Ginsburg replacement vote MORE (R-Tenn.) and Patty Murray Patricia (Patty) Lynn MurrayTrump health officials grilled over reports of politics in COVID-19 response CDC director pushes back on Caputo claim of 'resistance unit' at agency The Hill's Morning Report - Sponsored by The Air Line Pilots Association - Pence lauds Harris as 'experienced debater'; Trump, Biden diverge over debate prep MORE (D-Wash.), the top two members of the Senate's healthcare committee, aimed at stabilizing the individual health insurance market could produce.

"We have ... collapsing individual insurance markets around the country. Requests to continue to subsidize the insurance companies. It's a pretty controversial subject to subsidize insurance companies without any reforms," the GOP senator said.

He added that Democrats "have been pretty uninterested in any reforms," but the two parties will need to try to negotiate when they get back to Washington next month.

"So when we get back after Labor Day we'll have to sit down and talk to them and see ... what the way forward might be," he said.

Alexander and Murray are expected to hold a series of bipartisan Health Committee hearings next month.

Their goal is to craft an insurance stabilization bill by mid-September that is expected to include money for ObamaCare's cost-sharing reduction payments, which President Trump has threatened to cut off.

McConnell has previously acknowledged that the next steps on healthcare are unclear after Republicans campaigned for years on repealing and replacing the Obama-era law.

“If the Democrats are willing to support some real reforms, rather than just an insurance company bailout, I would be willing to take a look at it,” McConnell told reporters earlier this month ahead of the annual Fancy Farm Picnic.