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I am eligible for an upgrade but the only option to buy is month to month where you pay the full $600 for a phone, not $200.
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To go back to a subsidized contract, you'll need to go in the store to do so. You'll also need to pay the upgrade fee and the increased line access charge monthly. These fees help to cover the full cost of the phone. Of course, you could pay less and get a device payment plan and no contract with a $20 access fee. Options...you has em.
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Don't assume the payments plans are more and contract is cheaper just because the phone cost seems so drastically different. The reality is, due to lower access charges with the payment plans and no upgrade fees, the payment plan is very often cheaper. The only way to know for you is to calculate the 24 month cost for each option. You pay full price for the phone one way or another.