Hey there,
I think you’re trying to over complicate it with loops. I have made a simple setup that should work for you. Made some comments above the notes, hopefully it will be of some use to you.
What happens here is when you press X you will wait 5 seconds then your health will start regenerating 1% every 0.2 seconds.
Setting the bool in the first branch will prevent from health regen being run more then once at any time, you have to wait until you are fully regenerated, at which point the bool is set to false again.
The rest is just a simple CustomEvent running over (looping) unless your health has fully regenerated.
[How it looks in game (YouTube)][2]