The caucus - which is made up for approximately three dozen hardline conservatives - felt the legislation put forth by House leadership did not go far enough to repeal the health care law.
Poe's resignation comes hours after Trump tweeted that the Freedom Caucus, along with cash-flush conservative groups that share its hard-line ideological views, "have saved Planned Parenthood" and Obamacare by opposing the bill.
House Republicans withdrew the bill on Friday after it became clear they lacked the votes for it to pass, a development that served a major setback to their consistent promise to repeal and replace the Affordable Care Act.
Ryan called the day "disappointing".
Freedom Caucus members defended their positions, saying the plan pushed by House Speaker Paul Ryan, R-Wis., cost too much and didn't do enough to repeal the law. "The reason? He failed to deliver the votes on his healthcare bill", she said.
"What happened is that Washington won", he said.
"If Trump can't line up support for health care, it's going to be hard to see how he will be able to lead on tax reform", said William Gale, senior fellow at the Brookings Institution and co-director of the Tax Policy Center. "We had no votes from the Democrats", Trump told reporters in the Oval Office Friday.
Bernie Sanders, the independent senator from Vermont who ran strongly for the Democratic presidential nomination on a platform of universal healthcare coverage, was predictably scathing of Republican efforts at reform.
The President, 70, addressed reporters in the White House soon after.
"Maybe the fact that we opposed it did the country a favor because this bill didn't repeal ObamCare", he said.
"We came really close today, but we came up short", Ryan said.
Donald Trump is showing few signs of moving on from the health care debacle, choosing yesterday (SUN) to heap scorn on conservatives in his own party for helping Democrats save Obamacare. "And it's going to end up becoming nothing".
"We are going to proceed with tax reform".
Over the weekend, Trump suggested to his supporters that they watch Judge Jeanine Pirro's show on Fox News.
Senate Minority Leader Chuck Schumer (D-N.Y.) on ABC said Democrats are ready to work with Republicans in Congress, only if the White House abandons efforts to appease conservatives by scrapping the Affordable Care Act outright.
"I don't think this is prologue to other future things, because members realize there are other parts of our agenda that people have even more agreement on what to achieve", he said. "We Democrats, provided our Republican colleagues drop replace and stop undermining the ACA, are willing to work with our Republican friends".
I've been saying for the past year and a half that the best thing we could do, politically speaking, is let Obamacare explode.
On CNN's "State of the Union", Rep.
The outcome leaves both Ryan and Trump weakened politically.
The Act was meant to follow through on a key campaign pledge and strip back healthcare coverage for American citizens, but was withdrawn at the eleventh hour after it became apparent not enough Republicans were supporting the bill.