Preserving Access to Medicare Act of 2008

Preserving Access to Medicare Act of 2008 - Craig Thomas Rural Hospital and Provider Equity Act of 2008 - Amends title XVIII (Medicare) of the Social Security Act (SSA) to: (1) revise the payment adjustment for low-volume hospitals; (2) extend increased Medicare payments for ground ambulance services; (3) extend the authorization for Medicare rural hospital flexibility program grants; (4) provide for rebasing for sole community hospitals; and (5) extend the rural home health add-on policy through 2009.

Revises the formula for payments for physician services to provide an update to the single conversion factor of: (1) 0.5% for the remainder of 2008; and (2) 1.1% for 2009.

Extends the Physician Assistance and Quality Initiative (PAQI) Fund.

Directs the Secretary of Health and Human Services to establish a Physician Feedback Program.

Revises requirements or provides for: (1) incentive payments for electronic prescribing and primary care services in physician scarcity areas; (2) the Medicare anesthesia teaching program; (3) advanced diagnostic imaging services; (4) Medicare coverage of items and services under cardiac rehabilitation and pulmonary rehabilitation programs; (5) phase-out of the indirect costs of medical education (IME) from capitation rates; (6) quality improvement programs; and (7) certain prohibitions with respect to marketing of Medicare Advantage and prescription drug plans.

Amends the Public Health Service Act to authorize the Secretary to establish specified pilot projects regarding chronic kidney disease.

Amends the Tax Relief and Health Care Act of 2006 to extend the transitional medical assistance (TMA) and abstinence education programs.

Amends SSA title XIX to extend: (1) the qualifying individual program; and (2) the Medicaid disproportionate share hospital (DSH) allotment for Tennessee and Hawaii.

Provides for: (1) asset verification under Medicaid; and (2) reduction in payments for Medicaid administrative costs to prevent certain payment duplications.

Amends the Deficit Reduction Act of 2005 to extend authority for supplemental grants under SSA title IV part A (Temporary Assistance for Needy Families) (TANF).

Amends the Medicare, Medicaid and SCHIP Extension Act of 2007 to provide for additional funding for state health insurance assistance programs, area agencies on aging, and aging and disability resource centers.

Amends the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 to make appropriations for federal reimbursement of eligible providers for emergency health services furnished to undocumented aliens.