Ken sued back in $2021$ the year he got hurt. His hospital costs were HIGH $-$

$$400,000$ that year. He paid directly a part of this $-$ $$200,000$ because there was

some issue with his employer provided medical insurance coverage $($later resolved$).$

Anyway, he took a Schedule A tax deduction for the $$200,000$ since it exceeded

$10\%$ of his AGI of $100,000$ for $2021,$ he claimed $$190,000$ on his Schedule A and

itemized his deductions for $2021!$ Once fixed $$ he did get that $$200,000$ back from

his insurance company, but not until January $2023!$ And the insurance company

paid the balance of $$200,000$ for Ken, BUT paid DIRECTLY to the hospital! WHAT A

NICE PIECE OF COMPENSATION TO HAVE. How does this affect his AGI?