I have had many iphones replaced over the years, its $199 no matter what. As long as you have the phone physically. They will give you a look like brand new refurb for $199.
Just to reiterate what dave420 posted, Apple's raised the iPhone 5 out-of-warranty replacement fee to $269, not $199 like previous models.The price of the phone doesn't matter. It's a flat $199 rate.
http://support.apple.com/kb/index?page=servicefaq&geo=United_States&product=iphone