Nursing and Allied Health Education Preservation Act of 2008 - Amends title XVIII (Medicare) of the Social Security Act to prohibit the Secretary of Health and Human Services from denying provider-operated status for a nursing and allied education program that substantially meets certain requirements pertaining to the cost of approved activities for such programs, in effect as of October 1, 2006, on the basis of an organizational structure, contractual arrangements, or legal structure of the program, or a change in such a structure or arrangement, so long as a hospital, hospitals, or health system continues to substantially control the nursing or allied program.
Prohibits denial of payments for the costs of approved educational activities for a nursing or allied health education program. Requires restoration to a hospital of any recoupment or denial effected for a previous cost reporting year.