Abuse of Immigration in the US
There is abuse in the immigration system even today. The H1B is a flawed visa. But it is the gateway to skilled immigration and this is why this has become the focus of the anti-immigrant groups. Close the doors on H1B's and you close the door on Indians. Yes, this is clearly targeted racism.
BusinessWeek had to dig very hard to find the dirt and they sensationalized this out of all proportion. There were discussions about this story amongst the anti-immigrant groups for weeks in advance of its publication. It seemed strange to me that they would have so much information a BusinessWeek cover story and know of its timing. These xenophobes expected this to shift the balance towards them. They said the story was being timed with the debates in Congress and would help their cause. Needless to say, I raised this with the editors of BusinessWeek (and they wouldn't comment).
There is abuse in every government program and in most systems. If someone abuses the healthcare system, the solution isn't to shut down healthcare. The remedy here is to relax the restrictions on H1B visas so that these workers have the same rights as Americans.
Here are some pieces I wrote on this subject:
http://www.businessweek.com/technology/content/apr2009/tc20090415_771803.htm
http://www.techcrunch.com/2009/08/30/free-the-h-1bs-free-the-economy/