Financial planners should work Medicare into their year-end planning, says Allsup, a nationwide provider of Social Security disability, Medicare and Medicare Secondary Payer compliance services for individuals, employers and insurance carriers.

"Seniors are expected to spend hundreds of thousands of dollars on health care during retirement, as fewer employers offer retiree health care benefits and the baby boomers now entering Medicare live longer. This makes health care planning a very real financial issue," said Adrienne Muralidharan, senior Medicare specialist for the Allsup Medicare Advisor, a Medicare plan selection service.

Medicare beneficiaries are allowed to change plans during the fall open enrollment period. People aging into Medicare are allowed to enroll during the three months before, the month of and the three months following their 65th birthday.