House Speaker Paul Ryan, dealt what he called a "setback" in his first major legislative test with a Republican president, contended that failure to pass an Obamacare replacement should not derail the rest of his agenda, particularly tax reform.

"Yes, this does make tax reform more difficult. But it does not, in any way, make it impossible. We will proceed with tax reform," the Wisconsin Republican told reporters after the House pulled the embattled health-care plan shortly before a planned vote.

Ryan and his party failed to rally the support to pass their bill, faced with opposition from both the party's moderate and conservative wings. The bill, which was estimated to lead to more people uninsured and was unpopular in public opinion polls, could not clear a GOP-majority House.