at freeway speeds the tach is jumping 200 RPM's

Most likely not. If the check engine light has come on, have the computer scanned for trouble codes. A bad trans will slip at any speed. My guess is there may be a bad throttle position sensor or something like that.

I have p1870 transmission component slipping code showing. Doesn't slip bad though. I was reading up and some were saying possibly torque converter acting up locking and unlocking. I was also thinking of a throttle position sensor going out

200 RPM's would be hard to notice if it wasn't slipping. WHen the RPM's increase, do you feel the vehicle accellerate at all?

Yes when it jumps up and down it will***** a bit. Gets very frustrating driving on highway

Pull forward and back

That leads me to believe the trans isn't the problem. Try having the computer scanned for trouble codes. Most parts stores will do it for free. I think it may be engine related. Also, check to make sure the trans fluid isn't burnt, low, or really dirty.

Only codes present when scanned was the p1870. Transmission component slipping.

IS the trans fluid clean and full?

I need to check the fluid. Possibly low. I also have a bad thermostat that im going to fix would that have anything to do with the lurching? Being that the engine is not getting to normal operating temp?

No to the temp, but yes to the low ATF.

Ok thanks. So possibly could be due to low tranny fluid and slipping at higher speeds

Yes, low fluid can lead to low fluid pressure allowing the clutch pack to not be locked.