We study the effects of finite proton mass on the energy;levels of hydrogen atoms moving transverse to a superstrong magnetic field B with generalized pseudomomentum K perpendicular to. Field strengths of order B similar to 10(12) G are typically found on the surfaces of neutron stars, but we also study the;regime B greater than or similar to B-crit=4.3 X 10(13) G, where the Landau excitation energy of the proton is large. We adopt two different approaches: to the two-body problem in strong magnetic fields and obtain an approximate but complete solution of the atomic energy as a function of B and K perpendicular to. We show that, for B much greater than B-crit, there is an orthogonal set of bound states that do not have any Landau excitation contribution in their energies. The states with very large K perpendicular to have small binding energies and small transverse velocities, but are nevertheless distinct from the fully ionized states. The final results for the excitation energies are given in the form of analytical fitting formulas. The generalized Saha equation for the ionization-recombination equilibrium of hydrogen gas in the presence of a superstrong magnetic field is then derived. Although the maximum transverse velocity of a bound atom decreases as B increases, the statistical weight due to transverse motion is actually increased by the strong magnetic field. For the astrophysically interesting case of relatively low density and temperature, we obtain analytic approximations for the partition functions. The highly excited bound states have a smaller statistical weight than the fully ionized component.