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I had to check under Settings > Messages and saw "Waiting for activation." After it was activated, the number and Apple ID were merged. I checked both caller ID on my phone and Messages preferences on my Mac.
 
Yup, that did it. So simple and yet too complicated I think for most average users. Since Apple chose to do it that way they should have forced iMessage off by default, forcing you to sign back in and make the connection.

For my technologically challenged family members this is going to be great. I get tired of lecturing them to message my email and not phone number so I can receive the messages on my iPad as well. Now life will continue normally and we will be all good.
 
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