Does health and dmg scale per area?

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I have noticed something pecular in the Cosmodrome of Old Russia. Level 4s were taking as much damage as same level mobs. Now does that mean health for Mobs are scaled to my current level, or does that mean my damage is scaled down to when I was first in the area in Story mode?
I have the Vanguard Legendary On Time to it helps to understand with all 4 legendary armor items.
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