The Form 1099-MISC that you received is erroneous. The IRS instructions for Form 1099-MISC box 6 say "Enter payments of $600 or more made in the course of your trade or business to each physician or other supplier or provider of medical or health care services." Since you are the patient, not a physician or other supplier or provider of medical or health care services, the insurance company should not have issued the 1099-MISC. You should make an attempt to get them to issue a corrected 1099-MISC showing zero payment. You probably won't succeed, but it's worth a try.
If the insurance company won't correct the 1099-MISC, do what Opus 17 suggested. Report it as other income, with an offsetting negative entry. For the description of the offsetting entry I would suggest "Form 1099-MISC received in error." That parallels what the IRS says to do for an erroneous 1099-K.
