Correct categorizing $ received from and insurance claim.

there are multiple ways to address this, but here's what I'd do... You originally paid the bill, so you could enter that transaction in of your checking account (or credit card or cash account, however you paid) using a category for medical care, such as Health & Fitness:Doctor, of whatever seems appropriate in your list of Categories. Then to record the Medicare reimbursement, you'd simply record it as money in (e.g. a positive amount), using the same Category. the end result will be your medical Category will reflect the net amount of your payment less the amount you got back.