Replaces everything after the enacting clause. Creates the Veterans' Health Insurance Program Act of 2008. Re-enacts the provisions of the Veterans' Health Insurance Program Act, which was repealed on January 1, 2008. Provides for administration of the program by the Department of Healthcare and Family Services. Sets forth eligibility requirements for veterans. Requires the Department to purchase or provide health care benefits for eligible veterans that are identical to the benefits provided to adults under the State's Medicaid program, except for nursing facility services and non-emergency transportation. Includes provisions for co-payments and monthly premiums for health care services. Gives the Department a charge upon claims and causes of action and a right of subrogation, and gives the Department the right to recover the reasonable value of benefits provided. Requires an annual report to the General Assembly beginning January 1, 2009. Amends the Illinois Public Aid Code to add cross-references to the Veterans' Health Insurance Program Act of 2008. Repeals the Veterans' Health Insurance Program Act of 2008 on January 1, 2012. Effective immediately.