You get what you pay for.
This is what happens when HR drones are allowed to do naive "compensation range surveys" for regions. They do not understand the subtleties of the market and try to lump people with specialized skills, lots of experience, etc. in with people fresh off the boat from overseas, pumping out bug fixes for boring internal legacy J2EE systems at ancient insurance companies.
Companies like this will be in real trouble if remote work continues to be a thing. They better hope it doesn't.