If this is for the 2023 current tax year then go ahead and put in for the insurance claim and get the 50% back. Then going forward through the rest of this tax year do not use the HSA account to pay for the medical bills until you undone the excess withdrawal. At the end of the year you'll get a 1099-sa form showing how much of the distribution you you took and on the form 8889 you will enter all the medical expenses you incurred. The one should zero out the other and you have no penalties. FYI, in the future, you can pay medical bills outside of the HSA if you wish and then get reimbursed from the HSA account for what you paid out of pocket. This way you will never take an excess distribution from the HSA account. If you don't know how to get reimbursed from the HSA account then please direct the question to the HSA manager.
