Why are my 1099sa gross distributions counted as income. I payed at the doctor's office with my HSA Debit Card. It was reported on1099sa as gross distributions code1.

When I entered the Gross distributions form form 1099sa in TT, it shows it as income on my return. The gross distribution code is 1. I used these money to pay ultrasound fees at the doctor's office. I believe that these money should not be taxable. I participate in HDHP and used the money to pay medical expenses.