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Retirement tax questions
Yes, you need to amend, but you don't need to be in a hurry about it (see below).
The IRS has a copy of that 1099-SA so they knew you made a distribution. But the IRS also assumes that HSA distributions are taxable unless you state that they were 100% for qualified medical expenses.
When you enter the 1099-SA and on the next screen indicate that the entire distribution was for qualified medical expenses, your form 8889 will be updated accordingly.
You will see that your tax due (or refund) will not change, but eventually the IRS may notice that the information on your 8889 does not match the 1099-SA that they have a copy of. To avoid the eventual letter from the IRS, you want to correct this.
Note that the IRS normally does not begin this type of review for 6 months or more, with letters often coming out the next summer, so this is not a rush. Besides, you don't want to amend a return while your original return is still processing. Aim for doing this amendment in late February or early March (any time after you receive your refund).