WASHINGTON, (Reuters) – The U.S. Senate approved  President Barack Obama’s landmark healthcare overhaul yesterday, backing sweeping changes in the medical insurance  market and new coverage for tens of millions of uninsured  Americans.

On a party-line 60-39 vote, Senate Democrats supported the  most dramatic shifts in health policy in four decades. The  early-morning Christmas Eve vote followed months of political  wrangling that consumed the U.S. Congress and put a dent in  Obama’s public approval ratings.

The vote clears the way for tough negotiations in January  with the House of Representatives, which approved its own  version on Nov. 7 that features different approaches on taxes,  abortion and a proposed new government-run insurance program.

“With today’s vote we are now incredibly close to making  health insurance reform a reality in this country,” Obama said  after the Senate took a major step toward a goal that has  eluded Democrats since former President Bill Clinton’s failed  attempt in 1994. “Our challenge then is to finish the job.”

Once House-Senate negotiators agree on a single bill, each  chamber must approve it again before sending it to Obama to  sign into law. Republicans promised to continue the battle.

“This fight is long from over,” Republican Senate leader  Mitch McConnell said. “My colleagues and I will work to stop  this bill from becoming law.”

The Christmas Eve Senate session — the first since 1895 —  fulfilled a pledge by Senate Democratic leader Harry Reid to  pass the bill before Christmas. Republican opponents delayed  the final vote to the last day possible under Senate rules, but  agreed to an early-morning vote to let people head home.