you contact the trustee/administrator to withdraw the excess contribution made for 2021 (but not the over contribution from 2020) plus earnings thereon. you pay another 6% penalty for any remaining excess contribution for 2020. you probably won't get a 1099-SA for this until 2023 so you have to pretend that you got one and indicated to TurboTax that you took a funding distribution of the 2021 excess to avoid penalty. earnings are taxed in 2023.
the 6% penalty for the remaining 2020 excess is computed on the lower of the $550 or the year-end value of the HSA.
you continue to pay a penalty every year on the 2020 excess until it's removed by spending on qualified medical expenses. the other way is to under contribute the max for 2023 (7200-550). the $6650 reduces your taxable wages and the $550 becomes a HSA deduction (so you get the full $7200)
