Mine says:
"This line is eligible for equipment discount pricing when you sign up for a 2-year service agreement. You can also take advantage of our no-commitment pricing option. All iPhone purchases require a 2-year service commitment."
So do I have to pay the higher price for the iPhone??
The first sentence says it all. As long as you sign a new contract (Which the iPhone requires) you can get the discount price. So yes, you will pay either 199/299 depending on the storage you want. Lucky you