@prda0401 I would rather that you read and try the following, because it has the benefit of leaving the HSA custodian's paperwork the most correct.
If I understand you, you have an amount that you paid to a medical practitioner using HSA funds, and the practitioner refunded some of the money to you and not directly to your HSA. Is this correct?
If so, the correct way to deal with this is to report it (the refunded amount) to your HSA custodian as a "mistaken distribution". For background, read HSA Mistaken Distributions in the 1099-SA instructions.
Note that the HSA custodian does not have to allow the return of the mistaken distribution (see the TIP that follows in the 1099-SA instructions), so be nice, because this is the simplest way to deal with this issue.
If the HSA custodian accepts the mistaken distribution concept, they will ask you for the distributed money back - which you have, because the practitioner gave it to you. In fact, look for a mistaken distribution form on the HSA's website.
If the practitioner sent it straight back to the HSA, that's a problem, because the default action of the HSA custodian would be to report it as a contribution, which it is not. If this is the situation, come back and tell us.
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