Save Medicare Act of 2008

Save Medicare Act of 2008 - Amends title XVIII (Medicare) of the Social Security Act, as amended by the Medicare, Medicaid, and SCHIP Extension Act of 2007, to: (1) increase the Medicare physician payment update for 2009; and (2) extend the physician quality reporting system, the incentive payment program for physician scarcity areas, the floor on the work geographic adjustment to the physician fee schedule, and the accommodation for physicians ordered to active duty in the armed services.

Expresses the sense of the Senate that: (1) the provisions of, and amendments made by, this Act should be deficit neutral over the five year period beginning on October 1, 2008; and (2) Congress should address the challenges facing the Medicare program in a fiscally responsible manner.

Expresses the sense of the Senate that: (1) the Medicare program should provide payments to physicians and other health professionals that serve as positive incentives for participation in voluntary initiatives to improve health care quality; and (2) financing for such initiatives should be non-punitive and exempt from the Medicare physician fee schedule budget neutrality requirements.