American University student Josh Kaib makes a damning analogy for campus meal plans, likening them to Obamacare.

Across America, college kids are ripped off by campus meal plans.

It goes a little something like this: Students are faced with limited choices, high prices, and business monopolies on campuses. The quality is low, the cost is high, and lines are far too long.

Take the situation at American University, one that is likely similar to many campuses across the nation.

Last June, campus officials decided not to renew a contract with their food-service vendor. After years of complaints, the writing was on the wall. A new company took over, promising better food and better service. Campus officials pledged things would get better.

They haven’t.

Like many other universities, American’s campus is far from a free market. In fact, on-campus dining is essentially a duopoly, with two entities, the new food vendor as well as a local businessman, running nearly every dining outlet on campus. A true capitalist setting it is not.

Those with meal plans are well aware that they pay more for their food than customers who buy the same stuff off-campus or with cash.

But because students with meal plans are typically somewhat insulated from the costs, (think parents and college loans), dining departments essentially rip them off.

….At American University, for example, those who have the 150-meal swipe plan pay more than $13 per meal. Meal swipes can be used for Subway sandwiches, burger meals, chicken tender meals, and many other food options on campus, but all are worth less than $13 if paid for with cash.

…Prices for the meal plans are included in the overall bill that students or parents have to pay. And because it is on top of other expenses, it is easy to overlook the huge expense of these plans. Students who live on campus are often individually mandated to purchase a plan, which sounds a lot like Obamacare, doesn’t it?

Just as distortions occur in the healthcare market because of third-party payer, so too are distortions present with on-campus dining. Because they are being overpaid for lower-quality food, food service providers have little economic incentive to improve quality or lower costs.

With such little competition, it’s no wonder students often grumble about the food on campus.