I tried Basing An Ability Off the Khadgars Gem Of Health and after the first level no matter what HP Gain it says it should have the unit is stuck at 1200 HP
No, those abilities don't work with levels greater than 1 if I remember right. You should do a search, there was a thread a while back that discussed the various work-arounds you can use
Here is a link to Blade.dk's SetUnitMaxState system.
Using this will allow you to set a unit's maximum mana/life with a single line of code in a function.
That's the safest and most effective way to do it.