Thanks to both of you for an excellent comprehensive response! I had to read this 4 times!
While we re both covered under her HDCP, I am the one who is the "primary owner for the HSA from my prior job and always contributed for my wife in there.
Thus by her having the HDCP and me having the HSA account, the max in our case with December Medicare would be 1000+3550+3,254 = $7804 max which is outline in here.
I did not realize that we could contribute a proprated amount of a additional $1000 for her if she opens her own account but my HSAa being a "family". I am not sure that would be allowed.
PS: I also realize the service rep from my HSA company gave me a completely wrong number.