Those 99/199 prices you see Apple advertising are the "upgrade" (subsidized) prices. To get that price you need to be eligible, with Verizon in your case, for upgrade pricing which is now bumped up to two years since your last phone. So yes, if you are not yet eligible with Verizon for upgrade pricing, you will have to pay the full unsubsidized 549/649 price.
If you login to your Verizon acct. online you can see when you are eligible for upgrade. I just checked mine and from the main account page there is a "View upgrade date" link just below the main photo of your current device.