As I understand it, H1B visas are subject to a lottery system, the number of places available has not changed in years, and there are always more applicants tha

As I understand it, H1B visas are subject to a lottery system, the number of places available has not changed in years, and there are always more applicants than there are visas available. Do denied applications count towards the cap? If not, then this change can't be making it meaningfully "harder" to get a visa. If it's harder for one applicant to get a visa, it's easier for another who benefits from the first one being rejected. Ideally this should benefit the really excellent applicants and disadvantage the body shop outsourcers, which is exactly the H1B reform HN is normally calling for.