My entire body is itching and when I scratch a scab forms then I scratch the scab off and it gets bigger, is there a bigger problem here?

Itching. Oh absolutely! the problem here is the itching, not scabs. You need to see a dermatologist and determine why the itching is occurring. There are many causes of itching, some of them quite serious, and i would advise you do not tary in seeing the dermatologist.
Yes. It is necessary to find the reason for the itching, best done in your doctor's office. In the meantime, it is a bad idea to scratch of a scab; underneath the scab, healing is taking place. By scratching off the scab, you can remove the new tissue and have to start the healing process over again.