I hit 40 back on Wednesday, struggling through a jamming pistol at Tormenta. I was over 400 points away from 40 and I went after a level 32 Seabeard. He went down quickly and all of the sudden I hit 40 and my health jumped to 2349! And no, I have not been going crazy adding skill points to up my hp. So talk about a glitch there. I would say that my health before that was approximately 1850 based on a recent screen shot taken a few weapons levels earlier. But to get that over 400 rep from a Seabeard, not cycling through weapons or doing anything like that - just straight cutlass? Looking at the screen shot that I took when it happened, he gave me 41 rep, and yet I shot to 40. It doesn't make sense, and on top of that, I was so surprised that I almost missed the screen shot!
But at least I know that I'm not crazy, I was thinking that my health looked to be a little on the high side.